Sequential Lottery Contests with Multiple Participants
24 Pages Posted: 10 Apr 2017
Date Written: April 10, 2017
The literature on aggregative games, which has been applied in the study of contests, has focused on simultaneous games. We apply aggregative games techniques in a novel fashion in the analysis of sequential lottery contests with n players. It is shown that: (1) there exists a unique subgame perfect equilibrium in pure strategies, and (2) unlike in the case of a small contest, aggregate expenditure in a large contest is lower than in the corresponding simultaneous contest.
Keywords: Aggregative games, Sequential Contests, Subgame Perfect Equilibrium
JEL Classification: C72, D43, L13
Suggested Citation: Suggested Citation