DP5132 Contests with Ties
|Author(s):||Daniel Cohen, Aner Sela|
|Publication Date:||July 2005|
|Keyword(s):||all-pay auctions, contests|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=5132|
We study all-pay contests in which there is a positive probability of a tied outcome. We analyse both one-stage contests and multi-stage contests with tie-breaks. We demonstrate that in symmetric two-player contests, the designer does not have an incentive to award a prize in a case of a tie. Consequently, in symmetric multi-stage two-player contests, the designer should allow an unlimited number of tie-breaks until a winner is decided.