All-pay effort identity
ID: all-pay-effort-identity
Suppose values are nonnegative, the rank-order expected prize allocation is increasing and differentiable, and . With unit effort cost and zero effort at the lowest type, the symmetric equilibrium effort is . A true type imitating type receives utility , whose derivative in is . It increases up to and decreases afterwards, proving the best response property. This is the interim payment identity specialized to an all-pay contest.
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