Information in conflicts
AbstractWe consider a two-player contest for a prize of common but uncertain value. We show that less resources are spent in equilibrium if one party is privately informed about the value of a prize than if either both agents are informed or neither agent is informed. Furthermore, the uninformed agent is ex ante strictly more likely to win the prize than is the informed agent. -- Der Autor untersucht einen Wettbewerb mit zwei Spielern um einen Gewinn von allgemeinem, jedoch unbekanntem Wert. Er zeigt, daÃ im Vergleich zu einer Situation in der beide oder keiner von beiden Akteuren die HÃ¶he des Gewinns kennen, weniger Ressourcen im Gleichgewicht verwendet werden, als in dem Fall in dem einer der beiden Spieler Ã¼ber die HÃ¶he des Gewinns informiert ist. Des weiteren ist es ex ante streng genommen wahrscheinlicher, daÃ der uninformierte Spieler den Gewinn erhÃ¤lt und nicht der informierte.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 110 (2003)
Issue (Month): 1 (May)
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Web page: http://www.elsevier.com/locate/inca/622869
Other versions of this item:
- Wärneryd, Karl, 2000. "Information in Conflicts," Working Paper Series in Economics and Finance 388, Stockholm School of Economics.
- Wärneryd, Karl, 2001. "Information in conflicts," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-11, Social Science Research Center Berlin (WZB).
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D44 - Microeconomics - - Market Structure and Pricing - - - 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
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