Abstract
This study develops a war-of-attrition model with the asymmetric feature that one player can be defeated by the other but not vice versa; that is, only one player has an exogenous probability of being forced to capitulate. With complete information, the equilibria are almost identical to the canonical war-of-attrition model. On the other hand, with incomplete information on a player's robustness, a war where both players fight for some duration emerges. Moreover, a player who is never defeated may capitulate in equilibrium, and this player will give in earlier if the other player's fighting costs are greater.
Original language | English |
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Pages (from-to) | 313-331 |
Number of pages | 19 |
Journal | B.E. Journal of Theoretical Economics |
Volume | 15 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2015 Jul 1 |
Keywords
- Bayesian learning
- asymmetric robustness
- attrition
- war
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)