The value of public information in common-value Tullock contests

B-Tier
Journal: Economic Theory
Year: 2017
Volume: 63
Issue: 4
Pages: 925-942

Authors (3)

Ezra Einy (not in RePEc) Diego Moreno (Universidad Carlos III de Madr...) Benyamin Shitovitz (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Abstract Consider a symmetric common-value Tullock contest with incomplete information in which the players’ cost of effort is the product of a random variable and a deterministic real function of effort, d. We show that the Arrow–Pratt curvature of d,  $$R_{d},$$ R d , determines the effect on equilibrium efforts and payoffs of the increased flexibility/reduced commitment that more information introduces into the contest: If $$R_{d}$$ R d is increasing, then effort decreases (increases) with the level of information when the cost of effort (value) is independent of the state of nature. Moreover, if $$R_{d}$$ R d is increasing (decreasing), then the value of public information is nonnegative (nonpositive).

Technical Details

RePEc Handle
repec:spr:joecth:v:63:y:2017:i:4:d:10.1007_s00199-016-0974-3
Journal Field
Theory
Author Count
3
Added to Database
2026-01-26