Share This Article:

Information Policy in Contests with Little Noise

Abstract Full-Text HTML Download Download as PDF (Size:81KB) PP. 53-56
DOI: 10.4236/tel.2011.13012    4,334 Downloads   7,987 Views   Citations

ABSTRACT

In this paper, we analyze a contest organizer’s decision to release intermediate information to the contestants. Contrary to the existing literature, we assume that there is little noise affecting the contest outcome so that there may be only mixed-strategy equilibria at the contest stage. Optimal information policy is found to depend on the prize spread and information may be revealed if contestants are very heterogeneous. This is different from results in the previous literature, which finds that the optimal information policy is independent of the prize structure and that information should be concealed from the contestants in case they are heterogeneous.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

P. Garakani and O. Gürtler, "Information Policy in Contests with Little Noise," Theoretical Economics Letters, Vol. 1 No. 3, 2011, pp. 53-56. doi: 10.4236/tel.2011.13012.

References

[1] A. M. Spence, “Job Market Signaling,” Quarterly Jour- nal of Economics, Vol. 87, No. 3, 1981, pp. 355-374. doi:10.2307/1882010
[2] V. Crawford and J. Sobel, “Strategic Information Trans- mission,” Econometrica, Vol. 50, No. 6, 1982, pp. 1431- 1451. doi:10.2307/1913390
[3] F. Ederer, “Feedback and Motivation in Dynamic Tour- naments,” Journal of Economics and Management Strategy, Vol. 19, No. 3, 2010, pp. 733-769. doi:10.1111/j.1530-9134.2010.00268.x
[4] O. Gürtler and C. Harbring, “Feedback in Tournaments under Commitment Problems: Experimental Evidence,” Journal of Economics and Management Strategy, Vol. 19, No. 3, 2010, pp. 771-810. doi:10.1111/j.1530-9134.2010.00269.x
[5] M. Goltsman and A. Mukherjee, “Interim Performance Feedback in Multistage Tournaments: The Optimality of Partial Disclosure,” Journal of Labor Economics, Vol. 29, No. 2, 2011, pp. 229-265. doi:10.1086/656669
[6] E.P. Lazear and S. Rosen, “Rank-Order Tournaments as Optimum Labor Contracts,” Journal of Political Econ- omy, Vol. 89, No. 5, 1981, pp. 841-864. doi:10.1086/261010
[7] O. Gürtler, “The First-Order Approach in Rank-Order Tournaments,” Economics Letters, Vol. 111, No.3, 2011, pp. 185-187. doi:10.1016/j.econlet.2011.02.013
[8] M. R. Baye, D. Kovenock and C. G. de Vries, “The All- Pay Auction with Complete Information,” Economic The- ory, Vol. 8, No. 2, 1996, pp. 291-305.

  
comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.