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Symmetric Equilibria in a Cost-Averting War of Attrition Requiring Minimum Necessary Conceders

Author

Listed:
  • Kim Geofferey Jiyun

    (Department of Mathematics, Korea University 145, Anam-ro, Seongbuk-gu, Seoul, 02841, Korea)

  • Kim Bara

    (Department of Mathematics, Korea University 145, Anam-ro, Seongbuk-gu, Seoul, 02841, Korea)

Abstract

This paper provides an analysis of a cost-averting war of attrition with minimum necessary conceders. All symmetric stationary Nash equilibria are characterized. The multiplicity of equilibria has called for further refinements. We show that there exists a unique symmetric stationary trembling hand perfect equilibrium. Comparative statics results of the trembling hand perfect equilibrium are provided. This paper’s model is motivated by the problem of delayed public goods provisions in collective action settings. Augmenting the number of minimum necessary conceders can curtail delays.

Suggested Citation

  • Kim Geofferey Jiyun & Kim Bara, 2018. "Symmetric Equilibria in a Cost-Averting War of Attrition Requiring Minimum Necessary Conceders," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 18(1), pages 1-9, January.
    • Handle: RePEc:bpj:bejtec:v:18:y:2018:i:1:p:9:n:10
    DOI: 10.1515/bejte-2016-0109
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    References listed on IDEAS

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    More about this item

    Keywords

    Bellman equation; Nash equilibrium; public economics; trembling hand perfection; war of attrition;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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