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Preemptive Behavior in Sequential Tournaments

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Rank-order tournaments are usually modeled simultaneously. However, real tournaments are often sequentially. We show that agents' strategic behavior significantly differs in sequential tournaments compared to simultaneous tournaments. In a sequential tournament, under certain conditions the first acting agent chooses a preemptively high effort so that the following agent gives up. In general, the principal will prefer simultaneous tournaments in which preemptive behavior is impossible.

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Peter-Jürgen Jost, Matthias Kräkel

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Adapt according to the presented license agreement and reference the original author.