DP16503 Effort Allocations in Elimination Tournaments

Author(s): Aner Sela
Publication Date: September 2021
Date Revised: September 2021
Keyword(s): Elimination tournaments, knockout tournaments
JEL(s): D44, D72, D82
Programme Areas: Industrial Organization
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=16503

We study elimination tournaments with n stages and 2n symmetric players. The players have heterogeneous effort budgets that decrease within the stages proportionally to the efforts allocated in the previous stages such that for each effort unit that a player allocates, he loses α (the fatigue parameter) units of effort from his budget. We show that if the fatigue parameter α is larger than (1/n), the players equally allocate their efforts over all the first n-1 stages, and only in the final stage, they exert a lower effort.