Multi-player race

Serhat Doğan, Emin Karagözoğlu, Kerim Keskin and Çağrı Sağlam

Journal of Economic Behavior & Organization, 2018, vol. 149, issue C, 123-136

Abstract: We present a model of race with multiple players and study players’ effort choices and expected prizes in equilibrium. We show that, in equilibrium, once any two players win one battle each, the remaining players do not exert any effort anymore. This turns the continuation game into a two-player race. This is different than the results in previous two-player models of race, which report that all states of the game are reached with positive probabilities. We also provide a set of comparative static results on the effects of the number of players and the victory threshold.

Keywords: Contests; Discouragement effect; Dynamic games; Momentum effect; Race (search for similar items in EconPapers)
JEL-codes: C72 D72 D74 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:149:y:2018:i:c:p:123-136

DOI: 10.1016/j.jebo.2018.03.008

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