Memoryless-Strategy Equilibria of a N-Player War of Attrition Game with Complete Information

Hao Wang

The BE Journal of Theoretical Economics2025https://doi.org/10.1515/bejte-2024-0081article
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What the paper says

Consider a war of attrition game in continuous time with complete information, in which N ≥ 2 players compete for N − K prizes. I focus on the equilibria in which the strategies follow exponential distributions, which are memoryless. When K = 1, such an equilibrium can be explicitly characterized. The equilibrium certainly exists if N = 2. If N ≥ 3, it exists as long as the weakest player is not too weak compared to the average. If it exists, the equilibrium is unique under some conditions. When K ≥ 2, the game typically has nondegenerate equilibria in which K − 1 relatively weak players concede at the beginning. The model can be extended to the case in which the players have loser-dependent valuations. The model helps to solve a generalized exit game in a “nature oligopoly” and an all-pay auction with ascending bids.

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https://doi.org/https://doi.org/10.1515/bejte-2024-0081

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@article{hao2025,
  title        = {{Memoryless-Strategy Equilibria of a N-Player War of Attrition Game with Complete Information}},
  author       = {Hao Wang},
  journal      = {The BE Journal of Theoretical Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1515/bejte-2024-0081},
}

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