Information disclosure on the contest mechanism

Xin Feng

Journal of Mathematical Economics, 2020, vol. 91, issue C, 148-156

Abstract: In this paper, we study how to disclose the precision of the winner selection mechanism (i.e., the contest success function) that determines how effective a player’s effort is in determining his/her winning probability. Specifically, we focus on the disclosure of the adopted discriminatory power r of the Tullock contest. The discriminatory power r is exogenously given, and the contest organizer knows more than contestants about the true state of r. We examine the optimal disclosure policy that maximizes the expected sum of contestants’ efforts. In addition to public disclosure, we study private disclosure over groups with independent signals. We establish the optimality of full disclosure/concealment.

Keywords: Imperfectly discriminating contest; Public disclosure; Private disclosure over groups; Discriminatory power (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:91:y:2020:i:c:p:148-156

DOI: 10.1016/j.jmateco.2020.10.002

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