Keep on Fighting: Dynamic Win Effects in an All-Pay Auction

Derek J. Clark (), Tore Nilssen () and Jan Sand
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Derek J. Clark: School of Business and Economics, Postal: University of Tromsø , NO-9037 Tromsø, Norway

No 23/2014, Memorandum from Oslo University, Department of Economics

Abstract: We investigate a multi-period contest model in which a contestant.s present success gives an advantage over a rival in the future. How this win advantage affects contestants.efforts, and whether the laggard gives up or keep on fighting are key issues. We find that the expected effort of the laggard will always be higher than the rival at some stage in the series of contests, and this is most likely to happen when at a large disadvantage or at a late stage in the series.

Keywords: win advantage; motivation; contest; discouragement (search for similar items in EconPapers)
JEL-codes: D72 D74 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2014-10-16
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Citations: View citations in EconPapers (1)

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