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Multi-player contests with asymmetric information

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  • Karl Wärneryd

Abstract

We consider imperfectly discriminating, common-value, all-pay auctions (or contests) in which some players know the value of the prize, others do not. We show that if the prize is always of positive value, then all players are active in equilibrium. If the prize is of value zero with positive probability, then there is some threshold number of informed players such that if there are less, all uninformed players are active, and otherwise all uninformed players are inactive. Copyright Springer-Verlag 2012

Suggested Citation

  • Karl Wärneryd, 2012. "Multi-player contests with asymmetric information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(2), pages 277-287, October.
    • Handle: RePEc:spr:joecth:v:51:y:2012:i:2:p:277-287
    DOI: 10.1007/s00199-009-0472-y
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    Cited by:

    1. Kai Konrad & Dan Kovenock, 2012. "Introduction," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(2), pages 241-245, October.
    2. Ezra Einy & Ori Haimanko & Diego Moreno & Aner Sela & Benyamin Shitovitz, 2013. "Tullock Contests With Asymmetric Information," Working Papers 1303, Ben-Gurion University of the Negev, Department of Economics.
    3. Ezra Einy & Mridu Prabal Goswami & Ori Haimanko & Ram Orzach & Aner Sela, 2017. "Common-value all-pay auctions with asymmetric information," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(1), pages 79-102, March.
    4. Wärneryd, Karl, 2013. "Common-value contests with asymmetric information," Economics Letters, Elsevier, vol. 120(3), pages 525-527.
    5. Christian Ewerhart & Federico Quartieri, 2020. "Unique equilibrium in contests with incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(1), pages 243-271, July.
    6. Shanglyu Deng & Hanming Fang & Qiang Fu & Zenan Wu, 2023. "Information Favoritism and Scoring Bias in Contests," PIER Working Paper Archive 23-002, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    7. Aner Sela & Ezra Einy & 0ri Haimanko & Diego Moreno & Avishay Aiche & Benyamin Shitovitz, 2016. "Information Advantage in Common-Value Classic Tullock Contests," Working Papers 1614, Ben-Gurion University of the Negev, Department of Economics.
    8. Alexander Matros & Alex Possajennikov, 2014. "Common Value Allocation Mechanisms with Private Information: Lotteries or Auctions?," Discussion Papers 2014-07, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    9. Fu, Qiang & Gürtler, Oliver & Münster, Johannes, 2013. "Communication and commitment in contests," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 1-19.
    10. Mustafa Yildirim, 2015. "Accuracy in contests: players’ perspective," Review of Economic Design, Springer;Society for Economic Design, vol. 19(1), pages 67-90, March.
    11. Matros, Alexander & Possajennikov, Alex, 2016. "Tullock contests may be revenue superior to auctions in a symmetric setting," Economics Letters, Elsevier, vol. 142(C), pages 74-77.
    12. Lambert Schoonbeek, 2017. "Information And Endogenous Delegation In A Rent-Seeking Contest," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1497-1510, July.
    13. Wasser, Cédric, 2013. "A note on Bayesian Nash equilibria in imperfectly discriminating contests," Mathematical Social Sciences, Elsevier, vol. 66(2), pages 180-182.
    14. Kai A. Konrad & Florian Morath, 2017. "Escalation in Dynamic Conflict: On Beliefs and Selection," Working Papers tax-mpg-rps-2017-05, Max Planck Institute for Tax Law and Public Finance.
    15. Ori Haimanko, 2021. "Bayesian Nash equilibrium existence in (almost continuous) contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(3), pages 1231-1258, April.
    16. Einy, E. & Haimanko, O. & Moreno, D. & Sela, A. & Shitovitz, B., 2015. "Equilibrium existence in Tullock contests with incomplete information," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 241-245.

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    More about this item

    Keywords

    Contests; All-pay auctions; Asymmetric information; C72; D44; D72; D82; K41;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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