Two-of-three all-pay participation equilibrium
ID: two-of-three-all-pay-participation-equilibrium
Consider identical players, prizes , unit effort costs, and exactly two entries per player. The symmetric equilibrium omission probabilities sum to one. The common per-contest payoff is , and the unconditional rival distribution on is . Conditional on entry, its distribution function is . Choosing the omitted contest according to and sampling the two active efforts independently gives a symmetric equilibrium with expected payoff . These formulas determine the marginal laws; they do not determine the dependence between a player's two efforts.
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