Information sharing decisions in all-pay auctions with correlated types (Q6170040)

The main results of this paper are obtained in a relatively restrictive model involving two players with binary correlated types. More precisely, the authors analyze a two-player contest model with correlated types in which contestants who observe their own types privately in the second stage (after entering the contest) choose their disclosure policies in the first stage (prior to the contest). It is shown that: -- if players' types are positively correlated, there is a partial disclosure equilibrium in which exactly one player chooses \(D\) (disclosure) on the other chooses \(C\) (concealment); -- if players' types are negatively correlated, we will have a no-disclosure equilibrium in which both players choose \(C\). The proofs of the propositions are given in the Appendix.