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Information feedback in a dynamic tournament

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  • Aoyagi, Masaki

Abstract

This paper studies the problem of information revelation in a multi-stage tournament where the agents' effort in each stage gives rise to a stochastic performance signal privately observed by the principal. The principal controls the agents' effort incentive through the use of a feedback policy, which transforms his private information into a public announcement. The optimal feedback policy is one that maximizes the agents' expected effort. The paper identifies when the principal should use the no-feedback policy that reveals no information, or the full-feedback policy that reveals all his information.

Suggested Citation

  • Aoyagi, Masaki, 2010. "Information feedback in a dynamic tournament," Games and Economic Behavior, Elsevier, vol. 70(2), pages 242-260, November.
    • Handle: RePEc:eee:gamebe:v:70:y:2010:i:2:p:242-260
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