In this paper, we consider a sequence of multi-prize all-pay auctions, where low-performing players are eliminated along the way. We provide sufficient conditions such that equilibrium behavior is unaffected by the prospects of winning prizes in later rounds. When these conditions are not met, we identify a novel externality effect and derive equilibria in a model with two rounds. We compare our results to knockout tournaments in which players are partitioned into subcontests in each round.
|Number of pages||10|
|Journal||Journal of Mathematical Economics|
|Publication status||Published - Aug 2021|
- Elimination contest
- Identity-dependent externality