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Tullock contests with asymmetric information

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  • Ezra Einy
  • Ori Haimanko
  • Diego Moreno
  • A. Sela
  • Benyamin Shitovitz
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    Abstract

    We show that under standard assumptions a Tullock contest with asymmetric information has a pure strategy Bayesian equilibrium. Moreover, two-player common-value Tullock contests in which one of the players has an information advantage have a unique equilibrium. In equilibrium both players exert the same expected effort, and although the player with information advantage wins the prize with probability less than one-half, his payoff is greater or equal to that of his opponent. In common-value Tullock contests with more players any information advantage is rewarded, but the other properties of two players contests do not hold

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    Bibliographic Info

    Paper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we1314.

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    Date of creation: Jul 2013
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    Handle: RePEc:cte:werepe:we1314

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    Keywords: Tullock contests; Common-values; All pay auctions; Asymmetric information;

    References

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