Abstract
We study best-of-two contests between two symmetric groups of players. Each group includes n heterogeneous players who have resource budgets that decrease in the second stage proportionally to the resource allocated in the first stage. We demonstrate that in our group contests complete “free riding” does not necessarily exist, namely, there is always a subgame perfect equilibrium in which either all the players in a group allocate positive resources in both stages or just some of them, but never only one player allocates a resource in any stage when all the others in his group are free riders.
| Original language | American English |
|---|---|
| Pages (from-to) | 191-201 |
| Number of pages | 11 |
| Journal | Economic theory bulletin |
| Volume | 11 |
| Issue number | 2 |
| DOIs | |
| State | Published - 31 May 2023 |
Keywords
- Best-of-two contests
- Free riders
- Groups contests
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