On disclosure policy in contests with stochastic entry
Jiao, Q. Lu, J.
Jiao, Q.
Lu, J.
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Abstract
We study how a contest organizer who seeks to maximize participant effort should disclose the information on the actual number of contestants in an imperfectly discriminatory contest with stochastic entry. When each potential contestant has a fixed probability of entering the contest, the optimal disclosure policy depends crucially on the properties of the characteristic function H({dot operator})=f({dot operator})/f′({dot operator}), where f({dot operator}) is the impact function. The contest organizer prefers full disclosure (full concealment) if H({dot operator}) is strictly concave (strictly convex). However, the expected equilibrium effort is independent of the prevailing information disclosure policy if a linear H({dot operator}) (Tullock Contest) applies. © 2010 Springer Science+Business Media, LLC.
Keywords
Contests, Disclosure, Effort, Number of contestants, Stochastic entry
Source Title
Public Choice
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Date
2011
DOI
10.1007/s11127-010-9662-1
Type
Article