Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 2006 erstellt
Beschreibung:
Asymmetries in the abilities of contestants that engage in a protracted competition appear to be more common than symmetric competitions. Why doesn't the weaker player concede immediately? This paper introduces a model based on the idea that a "war" can only be won by winning a series of battles. There are two kinds of stationary equilibria, one with fighting to completion, the other with a cessation of hostilities. As a player gets closer to losing, that player's probability of winning battles falls, social welfare rises, and the levels of effort of both players rise. The theory is applied to a variety of conflicts, including wars and attempts at market domination