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First and second mover advantages and the degree of conflicting interests
Author(s) -
Grepperud Sverre,
Pedersen Pål Andreas
Publication year - 2022
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3494
Subject(s) - first mover advantage , commit , mathematical economics , stochastic game , variable (mathematics) , degree (music) , microeconomics , economics , mathematics , computer science , management , mathematical analysis , database , physics , acoustics
We introduce games consisting of two players where each player's payoff might be differently affected by changes in the decision variable of the rival. The games are classified into three categories: The high‐conflict category is characterized by both players having a first mover advantage, the medium‐conflict category by (at least) one player having a first mover advantage, and, the low‐conflict category by (at least) one player having a second mover advantage. The categories give rise to different equilibria in a prior game where the players are supposed to commit themselves to draw as early or as late as possible.