Two identical teams, each composed of two members, fight in a sequential best-of- \((2n+1)\) contest in which each match is an all-pay-auction. If value heterogeneity within teams is large, in equilibrium teammates “specialize:” the large-valuation member “takes one for the team” and contributes when teams are tied or her team is ahead, and the small-valuation member only contributes when her team is behind. Conversely, if value heterogeneity within teams is small, in equilibrium teammates “alternate” in taking these roles. Although alternation may be construed as superior cooperation within a team, it can also result in fiercer competition across teams and an overall larger prize dissipation.
