TY  - BOOK
AU  - Wasser,Cédric
TI  - Incomplete information in rent-seeking contests
SN  - 09382259
AV  - HB119 ECO 
PY  - 2013///
CY  - Berlin
PB  - Springer
KW  - Rent-seeking
KW  - Incomplete information
KW  - Contest
KW  - Private values
N2  - We consider a variant of the Tullock lottery contest. Each player’s constant marginal cost of effort is drawn from a potentially different continuous distribution. In order to study the impact of incomplete information, we compare three informational settings to each other; players are either completely informed, privately informed about their own costs, or ignorant of all cost realizations. For the first and the third setting, we determine the unique pure-strategy Nash equilibrium. Under private information, we prove existence of a pure-strategy Bayesian Nash equilibrium and identify a sufficient condition for uniqueness. Assuming that unit cost distributions all have the same mean, we show that under ignorance of all cost realizations ex ante expected aggregate effort is lower than under both private and complete information. Ex ante expected rent dissipation, however, is higher than in the latter settings if we focus on the standard lottery contest and assume costs are all drawn from the same distribution. Between complete and private information, there is neither a general ranking in terms of effort nor in terms of rent dissipation
UR  - https://doi.org/10.1007/s00199-011-0688-5
ER  -