Best-of-two contests with psychological effects

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.

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Correspondence to Alex Krumer.

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Krumer, A. Best-of-two contests with psychological effects. Theory Decis 75, 85–100 (2013). https://doi.org/10.1007/s11238-012-9313-8

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Keywords

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

JEL Classifications

  • D44
  • O31
  • O32