I show that the equilibrium derived in Gravelle and Sivey (2010) cannot hold for rational consumers. I then partially characterize the continuum of possible equilibria for rational consumers.

This paper studies vertical relations in a search market. As the wholesale arrangement between a manufacturer and its retailers is typically unobserved by consumers, their beliefs about who is to be blamed for a price deviation play a crucial role in determining wholesale and retail prices. The...

Some important forms of contests have participation costs and `default allocations’ where the contest prize is still awarded even when no-one actively competes. We solve a general, all-pay contest model that allows for flexible forms of these features under arbitrary asymmetry. We then use our...

Some important contests have participation costs and `default allocations’ where the contest prize is still awarded even when no-one actively competes. This paper incorporates flexible forms of these features into a general (single-prize) all-pay contest model under arbitrary asymmetry. We...