Endogenous strength in conflicts

Carmen Bevia () and Luis Corchon

International Journal of Industrial Organization, 2013, vol. 31, issue 3, 297-306

Abstract: In this paper we study a two period contest where the strength of players in the second period depends on the result of the contest in the first stage. We show that in contrast to one-shot contests in the same setting, heterogeneous players exert different efforts in the first stage and rent dissipation in the first period may be large. We study the conditions under which the discouragement effect holds. In addition, new issues emerge like the evolution of the strengths and the shares of the prize during the game.

Keywords: Contests; Conflict; Strength; Dynamic (search for similar items in EconPapers)
JEL-codes: C72 D72 D74 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Working Paper: Endogenous strength in conflicts (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:31:y:2013:i:3:p:297-306

DOI: 10.1016/j.ijindorg.2012.09.002

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