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Tullock contests with asymmetric information

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

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

Suggested Citation

  • Einy, Ezra & Haimanko, Ori & Moreno, Diego & Sela, A. & Shitovitz, Benyamin, 2013. "Tullock contests with asymmetric information," UC3M Working papers. Economics we1314, Universidad Carlos III de Madrid. Departamento de Economía.
  • Handle: RePEc:cte:werepe:we1314
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    References listed on IDEAS

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    Cited by:

    1. Giebe, Thomas, 2014. "Innovation contests with entry auction," Journal of Mathematical Economics, Elsevier, vol. 55(C), pages 165-176.
    2. Eliaz, Kfir & Forges, Françoise, 2015. "Information disclosure to Cournot duopolists," Economics Letters, Elsevier, vol. 126(C), pages 167-170.
    3. 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.

    More about this item

    Keywords

    Tullock contests;

    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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