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Common-value group contests with asymmetric information

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  • Cohen, Din
  • Sela, Aner

Abstract

We study contests between two groups where all the players have a common value of winning. In each group one of the players has an information advantage over the other players. This player is referred to as the dominant player. We show that a group contest is equivalent to a contest between the dominant players, and, as such, the expected total effort of both groups is always the same, while their probabilities of winning as well their expected total payoff are not.

Suggested Citation

  • Cohen, Din & Sela, Aner, 2020. "Common-value group contests with asymmetric information," Economics Letters, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301270
    DOI: 10.1016/j.econlet.2020.109164
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    References listed on IDEAS

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    2. Ezra Einy & Diego Moreno & Benyamin Shitovitz, 2017. "The value of public information in common-value Tullock contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(4), pages 925-942, April.
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    Cited by:

    1. Aner Sela, 2023. "Is there free riding in group contests?," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(2), pages 191-201, October.

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    More about this item

    Keywords

    Group contests; Asymmetric information;

    JEL classification:

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

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