Template-Type: ReDIF-Paper 1.0 Title: Sandbagging Author-Name: Matthias Kräkel Author-Email: m.kraekel@uni-bonn.de Classification-JEL: C72, D72 Keywords: ecoordination problem, dynamic contest, heterogeneous contestants, withholding e¤ort Abstract: Participants of dynamic competition games may prefer to play with the rules of the game by systematically withholding e¤ort in the beginning. Such behavior is referred to as sandbagging. I consider a two-period con- test between heterogeneous players and analyze potential sandbagging of high-ability participants in the first period. Such sandbagging can be ben- eficial to avoid second-period matches against other high-ability opponents. I characterize the conditions under which sandbagging leads to a coordina- tion problem, similar to that of the battle-of-the sexes game. Moreover, if players' abilities have a stronger impact on the outcome of the first-period contest than e¤ort choices, mutual sandbagging by all high-ability players can arise. Note: Length: 22 Creation-Date: 2011-11 Revision-Date: File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse12_2011.pdf File-Format: application/pdf Handle: RePEc:bon:bonedp:bgse12_2012