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Theory and Decision

, Volume 75, Issue 1, pp 85–100 | Cite as

Best-of-two contests with psychological effects

  • Alex Krumer
Article

Abstract

We study a best-of-two contest with two homogeneous players (teams). The winner is the player who wins in both stages. In the case of one victory for each team, a draw determines the identity of the winner. Each team has a value of winning the contest as well as a value of winning a single game. A team’s value of winning a game at its home field is higher than its value of winning a game away from home. We show that if winning in the first stage provides a psychological advantage in the second stage, each team would prefer to play the second stage at its home field.

Keywords

Winner-take-all contests All-pay contests Best-of-two contests 

JEL Classifications

D44 O31 O32 

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Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  1. 1.Department of EconomicsBen-Gurion University of the NegevBeer ShevaIsrael

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