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Caller Number Five: Timing Games that Morph From One Form to Another

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Author Info
Andreas Park
Lones Smith

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Abstract

There are two well-studied timing games in economics: In a War of Attrition, having more predecessors helps; in a Pre-emption Game, more predecessors hurts. This paper introduces and explores a rich new spanning class of timing games with _rank-order payoffs_ that subsumes both timing games as special cases. This explains a wide array of economic and social timing phenomena. Indeed, assuming unobserved actions and complete information, we identify equilibria that display both smooth and explosive entry. Anticipation of later timing games influences current play --- from swelling the magnitude of pre-emptive explosions to truncating wars of attrition. We provide conditions for existence, characterize equilibria, and compare outcomes under unobservable and observable actions. Both settings' equilibria show similarities, and the unobservable actions case provides intuitive insights as to likely equilibria with observable actions. The analysis turns in part on Karlin's 1968 theory of total positivity.

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Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number 871.

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Date of creation: 2004
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Handle: RePEc:red:sed004:871

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Keywords: game theory

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Find related papers by JEL classification:
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hendricks, Ken & Weiss, Andrew & Wilson, Charles A, 1988. "The War of Attrition in Continuous Time with Complete Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(4), pages 663-80, November. [Downloadable!] (restricted)
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  2. Sahuguet, Nicolas, 2006. "Volunteering for heterogeneous tasks," Games and Economic Behavior, Elsevier, vol. 56(2), pages 333-349, August. [Downloadable!] (restricted)
  3. Dilip Abreu & Markus K. Brunnermeier, 2003. "Bubbles and Crashes," Econometrica, Econometric Society, vol. 71(1), pages 173-204, January. [Downloadable!] (restricted)
    Other versions:
  4. Paul Klemperer & Jeremy Bulow, 1999. "The Generalized War of Attrition," Game Theory and Information 9901004, EconWPA. [Downloadable!]
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  5. Levin, Dan & Peck, James, 2003. " To Grab for the Market or to Bide One's Time: A Dynamic Model of Entry," RAND Journal of Economics, The RAND Corporation, vol. 34(3), pages 536-56, Autumn.
  6. Shinkai, Tetsuya, 2000. "Second Mover Disadvantages in a Three-Player Stackelberg Game with Private Information," Journal of Economic Theory, Elsevier, vol. 90(2), pages 293-304, February. [Downloadable!] (restricted)
  7. Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jack Ochs & In-Uck Park, 2006. "Dynamic Network Formation," Working Papers 233, University of Pittsburgh, Department of Economics, revised Jan 2006. [Downloadable!]
  2. Jack Ochs & In-Uck Park, 2005. "Overcoming the Coordination Problem: Dynamic Formation of Networks," Levine's Bibliography 172782000000000046, UCLA Department of Economics. [Downloadable!]
  3. Dan Levin & James Peck, 2005. "Investment Dynamics with Common and Private Values," Levine's Bibliography 666156000000000607, UCLA Department of Economics. [Downloadable!]
  4. Bo Honore & Aureo de Paula, 2008. "Interdependent Durations," PIER Working Paper Archive 08-007, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
  5. Markus K Brunnermeier & John Morgan, 2004. "Clock Games: Theory and Experiments," Levine's Bibliography 122247000000000401, UCLA Department of Economics. [Downloadable!]
  6. Gallice, Andrea, 2008. "Preempting versus Postponing: the Stealing Game," MPRA Paper 10256, University Library of Munich, Germany. [Downloadable!]
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