Group contests with private information and the “Weakest Link”

B-Tier
Journal: Games and Economic Behavior
Year: 2019
Volume: 118
Issue: C
Pages: 382-411

Authors (4)

Barbieri, Stefano (Tulane University) Kovenock, Dan (Chapman University) Malueg, David A. (not in RePEc) Topolyan, Iryna (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study weakest-link group contests with private information. We characterize all pure-strategy Bayes-Nash equilibria: various degrees of coordination are possible, from every cost type choosing a distinct effort level to all cost types coordinating on a single effort level. Such coordination may not enhance welfare. If groups are symmetric except for group size, players in the smaller group bid more aggressively than those in the larger group, but when asymmetries regard multiple dimensions, no clear-cut conclusions are evident. As an additional avenue for cooperation, we investigate cheap-talk sharing of private information among teammates, who then coordinate on the effort level most preferred by the player with the largest announced cost. A single group sharing information does better. But, with respect to the equilibrium in which all types choose a distinct effort, when players of both groups cooperate in this fashion all within-group gains are lost to increased competition between groups.

Technical Details

RePEc Handle
repec:eee:gamebe:v:118:y:2019:i:c:p:382-411
Journal Field
Theory
Author Count
4
Added to Database
2026-01-24