2009-04-01
Contests with Rank-Order Spillovers
Publication
Publication
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 ligitation, and a host of other contests.
Additional Metadata | |
---|---|
, , | |
, , , , | |
Tinbergen Institute | |
hdl.handle.net/1765/16514 | |
Tinbergen Institute Discussion Paper Series | |
Discussion paper / Tinbergen Institute | |
Organisation | Tinbergen Institute |
Baye, M., & de Vries, C. (2009). Contests with Rank-Order Spillovers (No. TI 2009-066/2). Discussion paper / Tinbergen Institute. Retrieved from http://hdl.handle.net/1765/16514 |