Abstract
In this paper, we show that contestants’ behavior in sequential-move tournaments strictly differs from the behavior in simultaneous-move ones. In a sequential-move tournament, players choose different effort levels even in the case of homogeneity, whereas in the simultaneous-move tournament homogeneous players always behave symmetrically. Moreover, in the sequential setting the first-moving player may choose a preemptively high effort level so that the second mover drops out of the competition under certain conditions. In order to avoid such behavior, the organizer of the tournament should choose a rather moderate spread between winner and loser prize as best response.
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