Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215098 
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8096
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study bribing in a sequential team contest with multiple pairwise battles. We allow for asymmetries in winning prizes and marginal costs of effort; and we characterize the conditions under which (i) a player in a team is offered a bribe by the owner of the other team and (ii) she accepts the bribe. We show that these conditions depend on the ratios of players' winning prizes and marginal costs of effort: the team owner chooses to bribe the player with the most favorable winning prize to marginal cost of effort ratio, and offer a bribe that leaves her indifferent between accepting (and exerting zero effort) and not accepting (and exerting her optimal effort). In some cases, the competition between players and the negative consequences of one player receiving a bribe on the team performance can drag down equilibrium bribe to zero. We also study the impact of changes in winning prizes and marginal costs of effort on equilibrium bribing behavior.
Subjects: 
bribing
contest games
pairwise battles
team contests
JEL: 
C72
D73
D74
Document Type: 
Working Paper
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