Two players enter a contest over common prize with same marginal cost of effort but asymmetric productivity of effort. When this productivity is unknown, contest outcome is used as a signal of productivity. So, the player who wins the first few rounds emerges as a winner and the contest efforts converge to zero. The theoretical results are confirmed in a laboratory experiment. The model is seen as a driver in the success of colonization such that colonies submitted after a few initial defeats. A historical account of British colonization of India is discussed in this light.
Identity, Contest, Information Cascade, Colonization
Identity and Belonging
Paper Presentation in a Themed Session
PhD student (3rd year), Economics, University of California, Irvine, United States
I am a PhD student and a Graduate Teaching Assistant at the University of California, Irvine. I study Economics of Identity and Political Economics using theory and experimental data.