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Population uncertainty and revealing contestants

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  • Kim, Bara
  • Yoo, Seung Han

Abstract

A number of contestants randomly arrives according to a Poisson distribution. Under population uncertainty, a contest designer considers whether or not to reveal the number of players to bidders. We show that for the expected revenue, the two policies are equivalent, but for the expected winner’s payment, the revealing policy dominates if the expected number of bidders is sufficiently large, whereas the concealing policy dominates if it is low.

Suggested Citation

  • Kim, Bara & Yoo, Seung Han, 2021. "Population uncertainty and revealing contestants," Economics Letters, Elsevier, vol. 199(C).
  • Handle: RePEc:eee:ecolet:v:199:y:2021:i:c:s0165176521000045
    DOI: 10.1016/j.econlet.2021.109727
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    References listed on IDEAS

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    1. McAfee, R. Preston & McMillan, John, 1987. "Auctions with a stochastic number of bidders," Journal of Economic Theory, Elsevier, vol. 43(1), pages 1-19, October.
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    4. Myerson, Roger B., 1998. "Extended Poisson Games and the Condorcet Jury Theorem," Games and Economic Behavior, Elsevier, vol. 25(1), pages 111-131, October.
    5. Roger B. Myerson, 1998. "Population uncertainty and Poisson games," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(3), pages 375-392.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Contest; Population uncertainty; Environmental equivalence;
    All these keywords.

    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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