Skip to main content
Article thumbnail
Location of Repository

Rent-seeking Contests under Symmetric and Asymmetric Information

By Cédric Wasser


We consider a variant of the Tullock rent-seeking contest. Under symmetric information we determine equilibrium strategies and prove their uniqueness. Then, we assume contestants to be privately informed about their costs of effort. We prove existence of a pure-strategy equilibrium and provide a sufficient condition for uniqueness. Comparing different informational settings we find that if players are uncertain about the costs of all players, aggregate effort is lower than under both private and complete information. Yet, under additional assumptions, rent dissipation is still smaller in the latter settings. Numerical examples illustrate that there is no general ranking between private and complete information. The results depend on the distribution costs are drawn from and on the exact specification of the contest success function.

Topics: Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems, A7 - Auktionen, Anreizprobleme und Wettbewerb, ddc:330
Year: 2010
OAI identifier:
Provided by: Open Access LMU

Suggested articles


  1. (1997). 16For a comprehensive introduction to low-discrepancy sequences see, e.g., Galanti and Jung
  2. (2006). A contest success function with a tractable noise parameter,”
  3. (1997). An Analysis of the War of Attrition and the All-Pay Auction,”
  4. (2005). Asymmetric contests with general technologies,”
  5. (1996). Contest success functions,”
  6. (2002). Discrete Prices and Competition in a Dealer Market,” Working Paper,
  7. (1980). Efficient Rent Seeking,” in Toward a theory of the rent-seeking society, edited by
  8. (2003). Information in conflicts,”
  9. (2009). Long-Term Conflict: How to Signal a Winner?” Working Paper,
  10. (1997). Low-Discrepancy Sequences: Monte Carlo Simulation of Option Prices,”
  11. (2009). Multi-player contests with asymmetric information,”
  12. (2008). Private versus complete information in auctions,”
  13. (2008). Rent-seeking contests with incomplete information,”
  14. (2009). Repeated Contests with Asymmetric Information,”
  15. SHOGREN (1998a): “Asymmetric information contests,”
  16. SHOGREN (1998b): “Effort levels in a Cournot Nash contest with asymmetric information,”
  17. (2001). Single Crossing Properties and the Existence of Pure Strategy Equilibria in
  18. (2009). Strategy and Dynamics in Contests,
  19. (1996). The all-pay auction with complete information,”
  20. (2007). The Existence and Uniqueness of Monotone Pure Strategy Equilibrium
  21. (2007). The theory of contests: a survey,”
  22. (2009). Where ignorance is bliss, ’tis folly to be wise - on the value of information in contests,” Working Paper,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.