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Sequential Contests

Research paper by John Morgan

Indexed on: 01 Jul '03Published on: 01 Jul '03Published in: Public Choice



Abstract

We compare expected rent-seeking expenditures and efficiencyof simultaneous versus sequential rent-seeking contests. We find that when two risk neutral ex ante identical agents are competing,sequential contests are ex ante Pareto superior tosimultaneous contests. We then endogenize the timing decisionof rent-seeking expenditures and show that with ex anteidentical contestants, all subgame perfect equilibria of thisgame are sequential contests.