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Equilibrium Existence in Two-player Contests Without Absolute Continuity of Information

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  • Ori Haimanko

    (BGU)

Abstract

We prove the existence of a behavioral-strategy Bayesian Nash equilibrium, without assuming absolute continuity of information, in two-player common-value contests where each player’s probability to win is continuous in efforts outside the zero-effort profile and non-decreasing in his own effort. In particular, equilibrium exists even if both players have a continuum of interdependent information types without joint density.
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Suggested Citation

  • Ori Haimanko, 2021. "Equilibrium Existence in Two-player Contests Without Absolute Continuity of Information," Working Papers 2106, Ben-Gurion University of the Negev, Department of Economics.
    • Handle: RePEc:bgu:wpaper:2106
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    References listed on IDEAS

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    1. Christian Ewerhart & Federico Quartieri, 2020. "Unique equilibrium in contests with incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(1), pages 243-271, July.
    2. Einy, E. & Haimanko, O. & Moreno, D. & Sela, A. & Shitovitz, B., 2015. "Equilibrium existence in Tullock contests with incomplete information," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 241-245.
    3. Oriol Carbonell-Nicolau & Richard P. McLean, 2018. "On the Existence of Nash Equilibrium in Bayesian Games," Mathematics of Operations Research, INFORMS, vol. 43(2), pages 100-129, February.
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    Cited by:

    1. Prokopovych, Pavlo & Yannelis, Nicholas C., 2023. "On monotone pure-strategy Bayesian-Nash equilibria of a generalized contest," Games and Economic Behavior, Elsevier, vol. 140(C), pages 348-362.

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    More about this item

    Keywords

    Tullock contests; Bayesian Nash Equilibrium; equilibrium existence; zero-sum games; absolute continuity of information; continuum of types; joint density.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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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