| Popis: |
Two players compete for a prize in an all-pay auction where their private binary valuations are independent from each other. A contest organizer commits to disclose additional information about the opponent’s valuation to each player – privately or publicly – to maximize either players’ expected payoff or total expected effort. I characterize the unique equilibrium of the contest when the organizer discloses a public signal to all players and a symmetric equilibrium when he discloses a private signal to each. When the organizer discloses privately, I show that any partially informative private signals induce higher expected payoffs for players and lower total expected effort than when no signal is disclosed. When the organizer discloses publicly, I characterize a public disclosure policy that induces higher total expected effort than when no signal is disclosed. I also characterize optimal public signals that maximize players’ expected payoff. Finally, the ranking between private and public signals in terms of maximizing players’ expected payoff is indeterministic. In terms of revenue ranking, the all-pay auction with the public disclosure policy dominates the first- and the second-price auctions with binary independent private valuation regardless of whether private or public disclosure is used in these winner-pay auctions. |
