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Information sharing in a contest game with group identity

Author

Listed:
  • Ford, Weixing
  • Lian, Zeng
  • Lien, Jaimie W.
  • Zheng, Jie

Abstract

In this paper, we study a private-information contest game with two stages. In stage 1 players simultaneously choose whether to announce their group identity, and in stage 2 each player simultaneously plays a within-group lottery contest and an across-group contest. Players’ information sharing incentives are analyzed and all symmetric equilibria of the game are fully characterized. Our results show that (1) full disclosure by both types is always one of the equilibria; (2) full concealment by both types can be supported as an equilibrium information strategy when the relative magnitude of high and low valuations is large, and when such a relative magnitude is small, there is an equilibrium in which the high type randomizes and the low type fully conceals.

Suggested Citation

  • Ford, Weixing & Lian, Zeng & Lien, Jaimie W. & Zheng, Jie, 2020. "Information sharing in a contest game with group identity," Economics Letters, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:ecolet:v:189:y:2020:i:c:s0165176520300343
    DOI: 10.1016/j.econlet.2020.109000
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    References listed on IDEAS

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    1. Jun Zhang & Junjie Zhou, 2016. "Information Disclosure in Contests: A Bayesian Persuasion Approach," Economic Journal, Royal Economic Society, vol. 126(597), pages 2197-2217, November.
    2. 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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    6. Jun Zhang & Junjie Zhou, 2016. "Information Disclosure in Contests: A Bayesian Persuasion Approach," Economic Journal, Royal Economic Society, vol. 126(597), pages 2197-2217.
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    9. Wu, Zenan & Zheng, Jie, 2017. "Information sharing in private value lottery contest," Economics Letters, Elsevier, vol. 157(C), pages 36-40.
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    More about this item

    Keywords

    Tullock contests; Information sharing; Group identity; Private value;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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