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Tullock contests with asymmetric information

Listed author(s):
  • Shitovitz, Benyamin
  • Sela, A.
  • Moreno, Diego
  • Haimanko, Ori
  • Einy, Ezra

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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Paper provided by Universidad Carlos III de Madrid. Departamento de Economía in its series UC3M Working papers. Economics with number we1314.

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Date of creation: Jul 2013
Handle: RePEc:cte:werepe:we1314
Contact details of provider: Web page: http://www.eco.uc3m.es/

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