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The Third Place Game

Author

Listed:
  • Netanel Nissim

    (BGU)

  • Aner Sela

    (BGU)

Abstract

We study an elimination tournament with four contestants, each of whom has either a high value of winning (a strong player) or a low value of winning (a weak player) and these values are common-knowledge. Each pair-wise match is modelled as an all-pay auction. The winners of the first stage (semifinal) compete in the second stage (final) for the first prize, while the losers of the first stage compete for the third prize. We examine whether or not the game for the third prize is profitable for the designer who wishes to maximize the total effort of the players. We demonstrate that if there are at least two strong players, there is always a seeding of the players such that the third place game is not profitable. On the other hand, if there are at least two weak players, then there is always a seeding of the players such that the third place game becomes profitable.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Netanel Nissim & Aner Sela, 2017. "The Third Place Game," Working Papers 1709, Ben-Gurion University of the Negev, Department of Economics.
    • Handle: RePEc:bgu:wpaper:1709
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    References listed on IDEAS

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    6. Aner Sela, 2012. "Sequential two-prize contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(2), pages 383-395, October.
    7. Alex Krumer & Reut Megidish & Aner Sela, 2017. "Round‐Robin Tournaments with a Dominant Player," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(4), pages 1167-1200, October.
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    17. Christian Groh & Benny Moldovanu & Aner Sela & Uwe Sunde, 2012. "Optimal seedings in elimination tournaments," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(1), pages 59-80, January.
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    Cited by:

    1. Sela, Aner, 2022. "Effort allocations in elimination tournaments," Economics Letters, Elsevier, vol. 211(C).
    2. Guajardo, Mario & Krumer, Alex, 2023. "Format and schedule proposals for a FIFA World Cup with 12 four-team groups," Discussion Papers 2023/2, Norwegian School of Economics, Department of Business and Management Science.

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    More about this item

    Keywords

    All-pay auctions; elimination tournaments; third place games;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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