TY - JOUR
T1 - Is there free riding in group contests?
AU - Sela, A
PY - 2023/5/31
Y1 - 2023/5/31
N2 - 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.
AB - 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.
KW - Best-of-two contests
KW - Free riders
KW - Groups contests
UR - https://www.webofscience.com/api/gateway?GWVersion=2&SrcApp=bgu-pure&SrcAuth=WosAPI&KeyUT=WOS:000999259200001&DestLinkType=FullRecord&DestApp=WOS
U2 - 10.1007/s40505-023-00250-w
DO - 10.1007/s40505-023-00250-w
M3 - Article
SN - 2196-1085
VL - 11
SP - 191
EP - 201
JO - Economic theory bulletin
JF - Economic theory bulletin
IS - 2
ER -