By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.
We introduce a new type of games, called “opportunity-hunting games,” in which two
players compete to discover an uncertain event (“opportunity”) that occurs at an unobserved
and random point in time. Players can inspect whether the event has already
occurred again and again, but each inspection is costly. Varying the parameters of the
model spans the range from games where competition between the players to be the first
to identify the opportunity is the dominant force, to games in which free-riding on the
other player’s effort is the dominant force. We characterize the game’s unique symmetric
Markov Perfect Equilibrium.
