Two players participate in a contest where the winner gets R and the loser gets P-R, 0
Fantastic news! We've Found the answer you've been seeking!
Question:
Two players participate in a contest where the winner gets R and the loser gets P-R, 0 ≤ R ≤ P. The two players have identical convex cost of effort functions C(e). The chance player i wins is ei/(e1+e2). Show that, at equilibrium, effort increases in R.
Related Book For
College Physics Reasoning and Relationships
ISBN: 978-0840058195
2nd edition
Authors: Nicholas Giordano
Posted Date: