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Tournaments

Author

Listed:
  • Dmitry Ryvkin

    (Florida State University)

  • Mikhail Drugov

    (New Economic School and CEPR)

Abstract

We derive robust comparative statics for general rank-order tournaments with additive and multiplicative noise. For unimodal distributions of noise, we show that individual equilibrium effort is unimodal in the number of players when it is deterministic. For a stochastic number of players, the unimodality is preserved for changes in the number of players in the sense of first-order stochastic dominance under an additional log-supermodularity restriction. Aggregate equilibrium effort can be increasing, decreasing or nonmonotone in the number of players. Equilibrium effort decreases as noise becomes more dispersed, in the sense of dispersive order or appropriately defined entropy.

Suggested Citation

  • Dmitry Ryvkin & Mikhail Drugov, 2017. "Tournaments," Working Papers wp2017_03_02, Department of Economics, Florida State University.
    • Handle: RePEc:fsu:wpaper:wp2017_03_02
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    File URL: https://coss.fsu.edu/econpapers/wpaper/wp2017_03_02.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ryvkin, Dmitry & Drugov, Mikhail, 2020. "The shape of luck and competition in winner-take-all tournaments," Theoretical Economics, Econometric Society, vol. 15(4), November.

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    More about this item

    Keywords

    tournament; comparative statics; stochastic number of players; unimodality; log-supermodularity; entropy;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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

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