A note on contests with a constrained choice set of effort
Theoretical Economics
2020-09-15 v9
Abstract
We consider a symmetric two-player contest, in which the choice set of effort is constrained. We apply a fundamental property of the payoff function to show that, under standard assumptions, there exists a unique Nash equilibrium in pure strategies. It is shown that all equilibria are near the unconstrained equilibrium. Perhaps surprisingly, this is not the case when players have different prize evaluations.
Cite
@article{arxiv.1809.04436,
title = {A note on contests with a constrained choice set of effort},
author = {Doron Klunover and John Morgan},
journal= {arXiv preprint arXiv:1809.04436},
year = {2020}
}