In the third essay, I extend the second essay's results to an all-pay auction setting. When the contest is deterministic, i.e., the player who exerts the most effort wins and the weaker player will not participate with some probability. However, I find that in the two-period contest, handicapping the loser of the first period increases total effort for all ability differences. When the objective is to increase accuracy in identifying the better player, handicapping the stronger sales representative is optimal.First, we model market competition as a contest between retailers for market share through advertising. Second, we assume the ... We focus on the example of car dealerships and a manufacturer for several reasons. First, dealerships tend to anbsp;...
|Title||:||Three Essays on Asymmetric Contests: Making the Strong and Weak Fight Harder|
|Publisher||:||ProQuest - 2008|