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Tullock contests with asymmetric information

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

    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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    File URL: http://e-archivo.uc3m.es/bitstream/10016/17295/1/we1314.pdf
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    Paper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we1314.

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    Date of creation: Jul 2013
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    Handle: RePEc:cte:werepe:we1314
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