Article ID: | iaor20134248 |
Volume: | 75 |
Issue: | 1 |
Start Page Number: | 85 |
End Page Number: | 100 |
Publication Date: | Jul 2013 |
Journal: | Theory and Decision |
Authors: | Krumer Alex |
Keywords: | game theory |
We study a best‐of‐two contest with two homogeneous players (teams). The winner is the player who wins in both stages. In the case of one victory for each team, a draw determines the identity of the winner. Each team has a value of winning the contest as well as a value of winning a single game. A team’s value of winning a game at its home field is higher than its value of winning a game away from home. We show that if winning in the first stage provides a psychological advantage in the second stage, each team would prefer to play the second stage at its home field.