Quadratic-cost two-player proportional contest
ID: quadratic-cost-two-player-proportional-contest
With values and effort costs , the unique pure Nash equilibrium has the efforts displayed above. Interior first-order conditions give , hence and . Against a positive rival effort, each payoff is a strictly concave function, so these conditions identify global best responses. On the axes, lowering a positive uncontested effort or adding a sufficiently small effort at the zero tie rules out equilibrium.
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