Contests with three or more heterogeneous agents (Q2268121)

This paper studies monotone equilibrium behavior in contest with observable effort where three or more participants have distinct risk attitudes and the monetary value for the prize of each is drawn independently from distinct distributions. These differences can either cause a player to drop out or use ``all-or-nothing'' strategies with discontinuous effort choice. Neither complete drop-out nor discontinuous bidding with finitely many gaps is consistent with pure strategy monotone Bayesian-Nash equilibrium in a contest with either exante identical players or only two distinct participants.