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Existence and Uniqueness of Pure Nash Equilibrium in Asymmetric Contests with Endogenous Prizes

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  • Shumei Hirai

    (Chuo University)

Abstract

This paper considers a contest with an endogenous prize, which is increasing in aggregate efforts of the players. Each player may have a different valuation of the prize and a different ability to convert expenditures to productive efforts. Under standard assumptions in the literature, we prove that there exists a unique pure Nash equilibrium in asymmetric contests with endogenous prizes.

Suggested Citation

  • Shumei Hirai, 2012. "Existence and Uniqueness of Pure Nash Equilibrium in Asymmetric Contests with Endogenous Prizes," Economics Bulletin, AccessEcon, vol. 32(4), pages 2744-2751.
    • Handle: RePEc:ebl:ecbull:eb-12-00574
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    References listed on IDEAS

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    2. repec:cte:werepe:we075126 is not listed on IDEAS
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    Cited by:

    1. Walter Ferrarese, 2018. "Equilibrium Effort in Games with Homogeneous Production Functions and Homogeneous Valuation," CEIS Research Paper 432, Tor Vergata University, CEIS, revised 12 Nov 2021.
    2. Chung, A., 2024. "Target Setting in Contests with Sabotage," Cambridge Working Papers in Economics 2409, Faculty of Economics, University of Cambridge.
    3. Damian S. Damianov & Shane Sanders & Anil Yildizparlak, 2018. "Asymmetric endogenous prize contests," Theory and Decision, Springer, vol. 85(3), pages 435-453, October.
    4. Akio Matsumoto & Ferenc Szidarovszky, 2022. "Stability of dynamic asymmetric contests with endogenous prizes," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(1), pages 29-40, January.
    5. Walter Ferrarese, 2022. "Equilibrium effort in games with homogeneous production functions and homogeneous valuation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(2), pages 195-212, June.

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    More about this item

    Keywords

    Contests; Endogenous prize; Existence and uniqueness;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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