| 来源类型 | Discussion paper
|
| 规范类型 | 论文
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| 来源ID | DP5182
|
| DP5182 The Value of Tax Shields IS Equal to the Present Value of Tax Shields |
| Ian Cooper; Kjell Nyborg
|
| 发表日期 | 2005-08-23
|
| 出版年 | 2005
|
| 语种 | 英语
|
| 摘要 | We characterize the unique Markov perfect equilibrium of a tug-of-war without exogenous noise, in which players have the opportunity to engage in a sequence of battles in an attempt to win the war. Each battle is an all-pay auction in which the player expending the greater resources wins. In equilibrium, contest effort concentrates on at most two adjacent states of the game, the 'tipping states', which are determined by the contestants? relative strengths, their distances to final victory, and the discount factor. In these states battle outcomes are stochastic due to endogenous randomization. Both relative strength and closeness to victory increase the probability of winning the battle at hand. Patience reduces the role of distance in determining outcomes. Applications range from politics, economics and sports, to biology, where the equilibrium behaviour finds empirical support: many species have developed mechanisms such as hierarchies or other organizational structures by which the allocation of prizes are governed by possibly repeated conflict. Our results contribute to an explanation why. Compared to a single stage conflict, such structures can reduce the overall resources that are dissipated among the group of players. |
| 主题 | Public Economics
|
| 关键词 | Winner-take-all
All-pay auction
Tipping
Multi-stage contest
Dynamic game
Preemption
Conflict
Dominance
|
| URL | https://cepr.org/publications/dp5182
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/534067
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推荐引用方式
GB/T 7714 |
Ian Cooper,Kjell Nyborg. DP5182 The Value of Tax Shields IS Equal to the Present Value of Tax Shields. 2005.
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