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Racing with Uncertainty

Racing with Uncertainty Abstract The paper presents two models of races in which there is both technological uncertainty and strategic interaction between competitors as the race unfolds. Most of the existing literature examines one or other of these features, but not the two combined. Our aim is to see how the efforts of competitors in a race vary with the intensity of rivalry between them. In our principal model, whch is of a one-dimensional race, it is shown that the leader in the race makes greater efforts than the follower, and efforts increase as the gap between competitors decreases. Under certain conditions the same results hold in our second, related model, which is of a two-dimensional race. This content is only available as a PDF. © 1987 The Society for Economic Analysis Limited http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Review of Economic Studies Oxford University Press

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References (12)

Publisher
Oxford University Press
Copyright
© 1987 The Society for Economic Analysis Limited
ISSN
0034-6527
eISSN
1467-937X
DOI
10.2307/2297442
Publisher site
See Article on Publisher Site

Abstract

Abstract The paper presents two models of races in which there is both technological uncertainty and strategic interaction between competitors as the race unfolds. Most of the existing literature examines one or other of these features, but not the two combined. Our aim is to see how the efforts of competitors in a race vary with the intensity of rivalry between them. In our principal model, whch is of a one-dimensional race, it is shown that the leader in the race makes greater efforts than the follower, and efforts increase as the gap between competitors decreases. Under certain conditions the same results hold in our second, related model, which is of a two-dimensional race. This content is only available as a PDF. © 1987 The Society for Economic Analysis Limited

Journal

The Review of Economic StudiesOxford University Press

Published: Jan 1, 1987

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