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Information acquisition in all-pay contests

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  • Feng, Xin
  • Song, Shuangteng

Abstract

This paper analyzes type-dependent information acquisition in an all-pay contest where two privately informed players can pay a fixed cost to learn their opponent’s type. We analyze and contrast two settings: one where this acquisition decision is covert (unobservable) and one where it is public (observable). Although information is only acquired below a cost threshold in both cases, the public setting creates a crucial strategic tension. The observable act of acquisition can discourage high-type players who wish to conceal their strength, while it may incentivize low-type players who can use the action to signal strength. These findings demonstrate that the option to acquire information is not just a preliminary step but a crucial strategic layer that endogenously shapes the contest’s information structure and influences subsequent efforts and outcomes.

Suggested Citation

  • Feng, Xin & Song, Shuangteng, 2025. "Information acquisition in all-pay contests," Economics Letters, Elsevier, vol. 256(C).
    • Handle: RePEc:eee:ecolet:v:256:y:2025:i:c:s0165176525004227
    DOI: 10.1016/j.econlet.2025.112585
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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