Prize and incentives in double-elimination tournaments

- I studied a game-theoretical model of double-elimination tournaments.
- Compared to single-elimination tournaments, players have a second chance to compete.
- The standard version produces higher total effort than single-elimination.
- The variant version however may produce lower total effort than single-elimination.
- Granting a second chance to symmetric players may create asymmetrical incentives.

I examine a game-theoretical model of two variants of double-elimination tournaments, and derive the equilibrium behavior of symmetric players and the optimal prize allocation assuming a designer aims to maximize total effort. I compare these theoretical properties to the well-known single-elimination tournament.