Backward-induction threshold in an elimination all-pay contest

ID: backward-induction-threshold-in-an-elimination-all-pay-contest

With ordered values and prizes remaining, define . In the recursively constructed discounted subgame perfect equilibrium, it is the second active player's effective prize and the effort-support upper endpoint. The highest player's utility is . The coefficients form a convex combination, so , allowing lower-player deviations to be bounded.

New to topics? Read the docs here!