Arbeitspapier
Simultaneous signaling in elimination contests
This paper analyzes the signaling effect of bidding in a two-round elimination contest. Before the final round, bids in the preliminary round are revealed and act as signals of the contestants' private valuations. Depending on his valuation, a contestant may have an incentive to bluff or sandbag in the preliminary round in order to gain an advantage in the final round. I analyze this signaling effect and characterize the equilibrium in this game. Compared to the benchmark model, in which private valuations are revealed automatically before the final round and thus no signaling of bids takes place, I find that strong contestants bluff and weak contestants sandbag. In a separating equilibrium, bids in the preliminary round fully reveal the contestants' private valuations. However, this signaling effect makes the equilibrium bidding strategy in the preliminary round steeper for high valuations and flatter for low valuations compared to the benchmark model.
- Language
-
Englisch
- Bibliographic citation
-
Series: Queen's Economics Department Working Paper ; No. 1184
- Classification
-
Wirtschaft
Noncooperative Games
Auctions
Asymmetric and Private Information; Mechanism Design
- Subject
-
all-pay auction
elimination contests
incomplete
lottery
signaling
Auktionstheorie
Signalling
Unvollkommene Information
Spieltheorie
- Event
-
Geistige Schöpfung
- (who)
-
Zhang, Jun
- Event
-
Veröffentlichung
- (who)
-
Queen's University, Department of Economics
- (where)
-
Kingston (Ontario)
- (when)
-
2008
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Zhang, Jun
- Queen's University, Department of Economics
Time of origin
- 2008
Other Objects (12)
Shi lei fu bu yi
Applied informatics and communication, Pt. 5. / Jun Zhang (ed.)
Applied informatics and communication, Pt. 4. / Jun Zhang (ed.)
China's economic growth: Trajectories and evolving institutions
An efficient Legendre-Galerkin approximation for the fourth-order equation with singular potential and SSP boundary condition
A Triboelectric Nanogenerator Based on TPU/PLA for Basketball Motion Monitoring
Heading in the direction of bifurcated networks: Hong Kong's evolution amidst the global submarine cable system
RUNX3-activated apelin signaling inhibits cell proliferation and fibrosis in diabetic nephropathy by regulation of the SIRT1/FOXO pathway
Comparative omics of CCM signaling complex (CSC)
Production control and supplier selection under demand disruptions
Common value auctions with return policies
Optimal decisions and comparison of VMI and CPFR under price-sensitive uncertain demand
Shi lei fu bu yi
Applied informatics and communication, Pt. 5. / Jun Zhang (ed.)
Applied informatics and communication, Pt. 4. / Jun Zhang (ed.)
China's economic growth: Trajectories and evolving institutions
An efficient Legendre-Galerkin approximation for the fourth-order equation with singular potential and SSP boundary condition
A Triboelectric Nanogenerator Based on TPU/PLA for Basketball Motion Monitoring
Heading in the direction of bifurcated networks: Hong Kong's evolution amidst the global submarine cable system
RUNX3-activated apelin signaling inhibits cell proliferation and fibrosis in diabetic nephropathy by regulation of the SIRT1/FOXO pathway
Comparative omics of CCM signaling complex (CSC)
Production control and supplier selection under demand disruptions
Common value auctions with return policies
Optimal decisions and comparison of VMI and CPFR under price-sensitive uncertain demand
Shi lei fu bu yi
Applied informatics and communication, Pt. 5. / Jun Zhang (ed.)
Applied informatics and communication, Pt. 4. / Jun Zhang (ed.)
China's economic growth: Trajectories and evolving institutions
An efficient Legendre-Galerkin approximation for the fourth-order equation with singular potential and SSP boundary condition
A Triboelectric Nanogenerator Based on TPU/PLA for Basketball Motion Monitoring
Heading in the direction of bifurcated networks: Hong Kong's evolution amidst the global submarine cable system
RUNX3-activated apelin signaling inhibits cell proliferation and fibrosis in diabetic nephropathy by regulation of the SIRT1/FOXO pathway
Comparative omics of CCM signaling complex (CSC)
Production control and supplier selection under demand disruptions
Common value auctions with return policies