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The Max‐Min Group Contest: Weakest‐link (Group) All‐Pay Auction

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  • Subhasish M. Chowdhury
  • Dongryul Lee
  • Iryna Topolyan

Abstract

We investigate a group all‐pay auction in which each group's effort is represented by the minimum among the effort levels exerted by the group members and the prize is a group‐specific public good. We fully characterize the symmetric equilibria for two groups. There are four types of equilibria: the pure strategy equilibria in which all (active) players exert the same effort; the semi‐pure strategy equilibria in which the players in a group play the same pure strategy whereas those in the other group play the same mixed strategy; the nondegenerate mixed strategy equilibria with continuous support; and the nondegenerate mixed strategy equilibria with discontinuous support. We then analyze a general contest with n groups.

Suggested Citation

  • Subhasish M. Chowdhury & Dongryul Lee & Iryna Topolyan, 2016. "The Max‐Min Group Contest: Weakest‐link (Group) All‐Pay Auction," Southern Economic Journal, John Wiley & Sons, vol. 83(1), pages 105-125, July.
    • Handle: RePEc:wly:soecon:v:83:y:2016:i:1:p:105-125
    DOI: 10.1002/soej.12129
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    References listed on IDEAS

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    Cited by:

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    2. Mario Gilli & Andrea Sorrentino, 2024. "The Set of Equilibria in Max-Min Two Groups Contests with Binary Actions and a Private Good Prize," Working Papers 539, University of Milano-Bicocca, Department of Economics.
    3. Jingfeng Lu & Zhewei Wang & Lixue Zhou, 2023. "Nested Tullock contests with nonmonotone prizes," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(1), pages 303-332, March.
    4. Konrad, Kai A. & Morath, Florian, 2023. "How to preempt attacks in multi-front conflict with limited resources," European Journal of Operational Research, Elsevier, vol. 305(1), pages 493-500.
    5. Feng, Xin & Jiao, Qian & Kuang, Zhonghong & Lu, Jingfeng, 2024. "Optimal prize design in team contests with pairwise battles," Journal of Economic Theory, Elsevier, vol. 215(C).
    6. Dongryul Lee & Pilwon Kim, 2022. "Group formation in a dominance-seeking contest," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(1), pages 39-68, January.

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