Entry and disclosure in group contests

Fuente: arXiv
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Autori principali: Boosey, Luke, Brookins, Philip, Ryvkin, Dmitry
Natura: Preprint
Pubblicazione: 2025
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author Boosey, Luke
Brookins, Philip
Ryvkin, Dmitry
author_facet Boosey, Luke
Brookins, Philip
Ryvkin, Dmitry
contents We study information disclosure policies for contests among groups. Each player endogenously decides whether or not to participate in competition as a member of their group. Within-group aggregation of effort is best-shot, i.e., each group's performance is determined by the highest investment among its members. We consider a generalized all-pay auction setting, in which the group with the highest performance wins the contest with certainty. Players' values for winning are private information at the entry stage, but may be disclosed at the competition stage. We compare three disclosure policies: (i) no disclosure, when the number of entrants remains unknown and their values private; (ii) within-group disclosure, when this information is disclosed within each group but not across groups; and (iii) full disclosure, when the information about entrants is disclosed across groups. For the benchmark case of contests between individuals, information disclosure always reduces expected aggregate investment. However, this is no longer true in group contests: Within-group disclosure unambiguously raises aggregate investment, while the effect of full disclosure is ambiguous.
format Preprint
id arxiv_https___arxiv_org_abs_2503_20092
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Entry and disclosure in group contests
Boosey, Luke
Brookins, Philip
Ryvkin, Dmitry
Theoretical Economics
We study information disclosure policies for contests among groups. Each player endogenously decides whether or not to participate in competition as a member of their group. Within-group aggregation of effort is best-shot, i.e., each group's performance is determined by the highest investment among its members. We consider a generalized all-pay auction setting, in which the group with the highest performance wins the contest with certainty. Players' values for winning are private information at the entry stage, but may be disclosed at the competition stage. We compare three disclosure policies: (i) no disclosure, when the number of entrants remains unknown and their values private; (ii) within-group disclosure, when this information is disclosed within each group but not across groups; and (iii) full disclosure, when the information about entrants is disclosed across groups. For the benchmark case of contests between individuals, information disclosure always reduces expected aggregate investment. However, this is no longer true in group contests: Within-group disclosure unambiguously raises aggregate investment, while the effect of full disclosure is ambiguous.
title Entry and disclosure in group contests
topic Theoretical Economics
url https://arxiv.org/abs/2503.20092