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Contests with private costs: Beyond two players

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  • Ryvkin, Dmitry

Abstract

It was shown previously that in the symmetric contest game of two players, equilibrium bidding is lower in the case of private information than in the case of public information about the players' costs. I consider symmetric contests of an arbitrary number of players with continuously distributed private costs and discuss the existence and properties of equilibrium bidding functions. I show that with more than two players the relationship between equilibrium bids in the cases of public and private information is no longer universal. While high-cost players still bid less in the private information case, relatively low-cost players may bid above or below their corresponding public information bids.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 26 (2010)
Issue (Month): 4 (December)
Pages: 558-567

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Handle: RePEc:eee:poleco:v:26:y:2010:i:4:p:558-567

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Contest Private information Bidding;

References

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Citations

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Cited by:
  1. Thomas Giebe & Paul Schweinzer, 2013. "Probabilistic Procurement Auctions," CESifo Working Paper Series 4320, CESifo Group Munich.
  2. Kräkel, Matthias, 2009. "Competitive Careers as a Way to Mediocracy," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 286, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  3. Cédric Wasser, 2013. "Incomplete information in rent-seeking contests," Economic Theory, Springer, vol. 53(1), pages 239-268, May.
  4. Christian Ewerhart, 2014. "Unique equilibrium in rent-seeking contests with a continuum of types," ECON - Working Papers 159, Department of Economics - University of Zurich.
  5. Wasser, Cédric, 2010. "Existence of a pure-strategy Bayesian Nash equilibrium in imperfectly discriminating contests," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 331, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  6. Thomas Giebe & Paul Schweinzer, 2012. "Fuzzy Price-Quality Ratio Procurement under Incomplete Information," Discussion Papers 12/26, Department of Economics, University of York.
  7. Ansink, Erik, 2011. "The Arctic scramble: Introducing claims in a contest model," European Journal of Political Economy, Elsevier, vol. 27(4), pages 693-707.
  8. Heinrich Ursprung, 2012. "The evolution of sharing rules in rent seeking contests: Incentives crowd out cooperation," Public Choice, Springer, vol. 153(1), pages 149-161, October.
  9. Lee, Dongryul, 2012. "Weakest-link contests with group-specific public good prizes," European Journal of Political Economy, Elsevier, vol. 28(2), pages 238-248.
  10. Van Long, Ngo, 2013. "The theory of contests: A unified model and review of the literature," European Journal of Political Economy, Elsevier, vol. 32(C), pages 161-181.
  11. Philip Brookins & Dmitry Ryvkin, 2014. "An experimental study of bidding in contests of incomplete information," Experimental Economics, Springer, vol. 17(2), pages 245-261, June.

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