{"title":"Disclosure of Product Information After Price Competition","authors":"Hee Yeul Woo","doi":"10.1515/bejte-2023-0011","DOIUrl":"https://doi.org/10.1515/bejte-2023-0011","url":null,"abstract":"\u0000 We study under what conditions product information sufficiently unravels in a competitive environment. Information sufficiently unravels if the consumer makes the same purchasing decision as under complete information. The consumer is uncertain about the sellers’ product characteristics while she has private information about her preference for differentiated products. In contrast to the prior literature, we focus on the case where the sellers compete to attract the consumer by disclosing product information only after they set prices for their individual products. We provide a necessary and sufficient condition on the consumer’s relative comparison of one seller’s product to the other’s for every outcome to be sufficient unraveling under comparative and non-comparative advertisements, respectively. We show, by example, that competition may enhance information disclosure only if the consumer has limited reasoning capability.","PeriodicalId":508480,"journal":{"name":"The B.E. Journal of Theoretical Economics","volume":"17 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141810396","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Offsetting Distortion Effects of Head Starts on Incentives in Tullock Contests","authors":"D. Knyazev, Caspar Moser","doi":"10.1515/bejte-2024-0006","DOIUrl":"https://doi.org/10.1515/bejte-2024-0006","url":null,"abstract":"\u0000 In this study, we examine a contest scenario where each player possesses a distinct head start that skews their chances of winning, thereby creating incentive distortions from the efficient level and adversely affecting the contest designer. While affirmative action policies offer a straightforward solution to counteract these distortions, their implementation may not always be viable in real-life applications. We characterize the unique class of non-discriminatory contest success functions (CSF) that enables to achieve an efficient level of effort when there are two players. Additionally, we demonstrate that achieving a symmetric equilibrium is unattainable without affirmative action when the contest involves more than two players.","PeriodicalId":508480,"journal":{"name":"The B.E. Journal of Theoretical Economics","volume":" 22","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140384402","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}