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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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    Cited by:

    1. Ford, Weixing & Lian, Zeng & Lien, Jaimie W. & Zheng, Jie, 2020. "Information sharing in a contest game with group identity," Economics Letters, Elsevier, vol. 189(C).
    2. Sakshi Gupta & Ram Singh, 2018. "On Existence and Properties of Pure-strategy Equilibria under Contests," Working papers 288, Centre for Development Economics, Delhi School of Economics.
    3. Giebe, Thomas, 2014. "Innovation contests with entry auction," Journal of Mathematical Economics, Elsevier, vol. 55(C), pages 165-176.
    4. Eliaz, Kfir & Forges, Françoise, 2015. "Information disclosure to Cournot duopolists," Economics Letters, Elsevier, vol. 126(C), pages 167-170.
    5. 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.
    6. 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.
    7. Sharma, Priyanka & Wagman, Liad, 2020. "Advertising and Voter Data in Asymmetric Political Contests," Information Economics and Policy, Elsevier, vol. 52(C).

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    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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