Tullock contests may be revenue superior to auctions in a symmetric setting

We consider a symmetric two-player common-value setting where each player gets a private signal about the object value. We show that for some parameter values the equilibrium revenue can be higher in a Tullock contest than in the standard auctions.

Bibliographic Details
Main Authors: Matros, Alexander, Possajennikov, Alex
Format: Article
Published: Elsevier 2016
Online Access:https://eprints.nottingham.ac.uk/32514/
Description
Summary:We consider a symmetric two-player common-value setting where each player gets a private signal about the object value. We show that for some parameter values the equilibrium revenue can be higher in a Tullock contest than in the standard auctions.