We consider competitive behaviour in sequential markets when current success or failure may affect the probability of future market opportunities. The analysis is conducted in a set up which may be interpreted as two private-value, sealed-bid, second-price sequential auctions. We demonstrate...

This paper identifies and attempts to fill a gap in the literature on rent-seeking. Many papers in the areas employ a logit win probability without considering whether or why such a choice should be reasonable. We present two approaches which can justify use of the common win probability.