Abstract
Zhang and Zhou (2016) use the concept of Bayesian persuasion due to Kamenica and Gentzkow (2011) to analyze information disclosure in a contest with one-sided asymmetric information. They show that an effort-maximizing designer can manipulate information disclosure to increase expected efforts in the contest, based upon active contest participation by all types of the informed player. We allow some informed types to exert no effort in the contest, showing how this (i) can increase the applicability of the previous results, and (ii) in some cases, can change the type of information disclosure.
Highlights
Contests in which resources are sunk to win a prize capture competition in social, political and economic spheres
A common theme is how a designer can maximize the resources expended in the contest
We extend the results of Zhang and Zhou (2016) by considering equilibria in which some types exert no effort, and we fully characterize optimal information disclosure in the two-type case
Summary
Clark a,∗, Tapas Kundu b a School of Business and Economics, UiT the Arctic University of Norway, Norway b Oslo Business School, Oslo Metropolitan University, Norway article info. Zhang and Zhou (2016) use the concept of Bayesian persuasion due to Kamenica and Gentzkow (2011) to analyze information disclosure in a contest with one-sided asymmetric information. They show that an effort-maximizing designer can manipulate information disclosure to increase expected efforts in the contest, based upon active contest participation by all types of the informed player. We allow some informed types to exert no effort in the contest, showing how this (i) can increase the applicability of the previous results, and (ii) in some cases, can change the type of information disclosure
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