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A note on contests with a constrained choice set of effort

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  • Doron Klunover
  • John Morgan

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.

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  • Doron Klunover & John Morgan, 2018. "A note on contests with a constrained choice set of effort," Papers 1809.04436, arXiv.org, revised Sep 2020.
    • Handle: RePEc:arx:papers:1809.04436
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    References listed on IDEAS

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