Is there free riding in group contests?

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)191-201
Number of pages11
JournalEconomic theory bulletin
Volume11
Issue number2
DOIs
StatePublished - 31 May 2023

Keywords

  • Best-of-two contests
  • Free riders
  • Groups contests

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