Sébastien Rouillon added Altogether_this_shows_that_the__.tex  over 8 years ago

Commit id: ae28f11741cca027fe8a7c1ccd8c4ec1a1db9591

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Altogether, this shows that the Nash equilibrium of the contest game is unique and interior.\footnote{It is worth noting that this result is not specific to the uniform distribution of damage. In fact, it remains true for any cumulative distribution of damage $F\left(\delta\right)$ such that $\int\nolimits _{k}^{1}\left(\delta-k\right)dF\left(\delta\right)>0$. We thank David Malueg for pointing us this point.} Solving (\ref{eq:focE}), we obtain that the equilibrium efforts of lobbies $I$ and $E$ equal  \begin{equation}  x^{\ast}\left(\delta\right)=  \sqrt{\left(b-\min\left(\delta,k\right)\right)y^{*}}-y^{*}\mbox{, for all }\delta,  \label{eq:x*}  \end{equation}  \begin{equation}  y^{\ast}=  \left(\frac{\left(1-k\right)^{2}}{2\left(b-k\right)+\left(1-k\right)^{2}}\right)^{2}\left(b-k\right).  \label{eq:y*}  \end{equation}