Discussion paper

DP11798 Signaling in Contests

We use the theoretical framework of signaling games to determine whether pre-contest communications would occur in contest models with asymmetric information. We find that in Tullock contests signals can be effectively used in equilibrium. We then study all-pay contests and show that such signals are not effective, and therefore pre-contest communications will not occur in equilibrium.

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Citation

Sela, A (2017), ‘DP11798 Signaling in Contests‘, CEPR Discussion Paper No. 11798. CEPR Press, Paris & London. https://cepr.org/publications/dp11798