Your Failure is My Opportunity - Effects of Elimination in Contests

Moritz Mendel, Ferdinand Pieroth, Christian Seel

Research output: Contribution to journalArticleAcademicpeer-review


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.
Original languageEnglish
Article number102495
JournalJournal of Mathematical Economics
Publication statusPublished - 2021

Cite this