Effort levels in a Cournot Nash contest with asymmetric information

• 成果类型: Article
• 署名作者: Hurley, TM; Shogren, JF
• 署名单位: Iowa State University; University of Wyoming
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(98)00026-7
• 发表日期: 1998
• 页码: 195-210
• 关键词: Asymmetric information; contests; rent-seeking; RISK

摘要

Many contests exist where one player does not know his opponent's value of a fixed prize, e.g. unobservable non-market preferences for preservation. This paper explores how changes in the nature of a one-sided information asymmetry affect effort levels in a Cournot Nash contest. The results indicate that the uninformed player's effort is an uncertain input such that his effort is inversely related to risk. This reduces his average odds of success. Comparative static results are driven by the perceived odds of success and risk for the uninformed player and the actual odds of success for the informed player. (C) 1998 Elsevier Science S.A.