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The n-player Hirshleifer contest
Ewerhart, Christian1; Sun, Guang Zhen2
2024-01
Source PublicationGames and Economic Behavior
ABS Journal Level3
ISSN0899-8256
Volume143Pages:300-320
Abstract

While the game-theoretic analysis of conflict is often based on the assumption of multiplicative noise, additive noise such as considered by Hirshleifer (1989) may be equally plausible depending on the application. In this paper, we examine the equilibrium set of the n-player difference-form contest with heterogeneous valuations. For high and intermediate levels of noise, the equilibrium is in pure strategies, with at most one player being active. For small levels of noise, however, we find a variety of equilibria in which some but not necessarily all players randomize. In the case of homogeneous valuations, we obtain a partial uniqueness result for symmetric equilibria. As the contest becomes increasingly decisive, at least two contestants bid up to the valuation of the second-ranked contestant, while any others ultimately drop out. Thus, in the limit, equilibria of the Hirshleifer contest share important properties of equilibria of the corresponding all-pay auction.

KeywordDifference-form Contests Nash Equilibrium Rent Dissipation All-pay Auction
DOI10.1016/j.geb.2023.11.004
URLView the original
Indexed BySSCI
Language英語English
WOS Research AreaBusiness & Economics
WOS SubjectEconomics
WOS IDWOS:001135650700001
PublisherACADEMIC PRESS INC ELSEVIER SCIENCE, 525 B ST, STE 1900, SAN DIEGO, CA 92101-4495
Scopus ID2-s2.0-85179434463
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF ECONOMICS
Corresponding AuthorEwerhart, Christian
Affiliation1.Department of Economics, University of Zurich, Switzerland
2.Department of Economics, University of Macau, Macau SAR, China
Recommended Citation
GB/T 7714
Ewerhart, Christian,Sun, Guang Zhen. The n-player Hirshleifer contest[J]. Games and Economic Behavior, 2024, 143, 300-320.
APA Ewerhart, Christian., & Sun, Guang Zhen (2024). The n-player Hirshleifer contest. Games and Economic Behavior, 143, 300-320.
MLA Ewerhart, Christian,et al."The n-player Hirshleifer contest".Games and Economic Behavior 143(2024):300-320.
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