EconPapers    
Economics at your fingertips  
 

Potential Competition in Preemption Games

Catherine Bobtcheff () and Thomas Mariotti

No 594, IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse

Abstract: We consider a preemption game with two potential competitors who come into play at some random secret times. The presence of a competitor is revealed to a player only when the former moves, which terminates the game. We show that all perfect Bayesian equilibria give rise to the same distribution of players' moving times. Moreover, there exists a unique perfect Bayesian equilibrium in which each player's behavior from any time on is independent of the date at which she came into play. We find that competitive pressure is nonmonotonic over time, and that private information tends to alleviate rent dissipation. Our results have a natural interpretation in terms of eroding reputations.

JEL-codes: C73 D82 (search for similar items in EconPapers)
Date: 2010-01
New Economics Papers: this item is included in nep-com, nep-cta and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://idei.fr/sites/default/files/medias/doc/wp/2010/potential2.pdf Full text (application/pdf)

Related works:
Journal Article: Potential competition in preemption games (2012) Downloads
Working Paper: Potential Competition in Preemption Games (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ide:wpaper:21999

Access Statistics for this paper

More papers in IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-03-30
Handle: RePEc:ide:wpaper:21999