Endogenous Strength in Conflicts

9 Pages Posted: 15 Jun 2011

See all articles by Carmen Bevia

Carmen Bevia

Universidad de Alicante

Luis C. Corchón

Universidad Carlos III de Madrid - Department of Economics

Date Written: June 15, 2011

Abstract

In this paper we study a two stage contest where the strength of players in the second stage depends on the result of the contest in the first stage. We show that this contest displays properties that are not present in one shot contests. Non-symmetric players make different efforts in the first stage and rent dissipation in the first period may be large. We study the conditions under which the discouragement effect holds. In addition, new issues emerge like the evolution of the strengths and the shares of the prize during the game.

Keywords: contests, conflict, strength, dynamic

JEL Classification: C72, D72, D74

Suggested Citation

Bevia, Carmen and Corchón Diaz, Luis Carlos, Endogenous Strength in Conflicts (June 15, 2011). Available at SSRN: https://ssrn.com/abstract=1865154 or http://dx.doi.org/10.2139/ssrn.1865154

Carmen Bevia

Universidad de Alicante ( email )

Campus de San Vicente, sn
Alicante, 03690
Spain

Luis Carlos Corchón Diaz (Contact Author)

Universidad Carlos III de Madrid - Department of Economics ( email )

Calle Madrid 126
Getafe, 28903
Spain

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