Contests with rank-order spillovers

Michael Baye, Dan Kovenock and Casper G. de Vries

Discussion Papers, Research Unit: Market Processes and Governance from WZB Berlin Social Science Center

Abstract: This paper presents a unified framework for characterizing symmetric equilibrium in simultaneous move, two-player, rank-order contests with complete information, in which each player’s strategy generates direct or indirect affine “spillover” effects that depend on the rank-order of her decision variable. These effects arise in natural interpretations of a number of important economic environments, as well as in classic contests adapted to recent experimental and behavioral models where individuals exhibit inequality aversion or regret. We provide the closed-form solution for the symmetric Nash equilibria of this class of games, and show how it can be used to directly solve for equilibrium behavior in auctions, pricing games, tournaments, R&D races, models of litigation, and a host of other contests. – Contests ; auctions ; spillovers

JEL-codes: C72 C73 D43 D44 D74 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (24)

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https://www.econstor.eu/bitstream/10419/51094/1/614782414.pdf (application/pdf)

Related works:
Journal Article: Contests with rank-order spillovers (2012)
Working Paper: Contests with Rank-Order Spillovers (2009)
Working Paper: Contests with Rank-Order Spillovers (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:wzbmpg:spii200909

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