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Harnessing beliefs to optimally disclose contestants’ types
Economic Theory ( IF 1.2 ) Pub Date : 2021-07-23 , DOI: 10.1007/s00199-021-01378-1
Marco Serena 1
Affiliation  

A contestant’s effort depends on her knowledge of her rival’s type. This knowledge is often limited in real-life contests. We propose a model where the principal of a contest has commitment power to verifiably disclose contestants’ types. We investigate the optimal disclosure policy to stimulate contestants’ efforts. Full disclosure stimulates more (less) effort than full concealment if high-types are more (less) likely than low-types. However, regardless of the likelihood of types, the optimal policy is that of contingent disclosure; it is optimal to commit to disclosing if both contestants are high types and concealing otherwise.



中文翻译:

利用信念以最佳方式披露参赛者的类型

参赛者的努力取决于她对对手类型的了解。这些知识在现实生活中的比赛中往往是有限的。我们提出了一种模型,其中竞赛负责人具有可验证地披露参赛者类型的承诺权。我们调查了激励参赛者努力的最佳披露政策。如果高类型比低类型更有可能(更少),则完全披露比完全隐藏会刺激更多(更少)的努力。然而,无论类型的可能性如何,最佳策略是有条件披露;如果两个参赛者都是高级类型,最好承诺公开,否则隐瞒。

更新日期:2021-07-23
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