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

- A symmetric two-player common-value setting with signals is considered.
- Equilibrium revenue of the Tullock contest is compared to that of the auctions.
- For some parameters, revenue may be higher in the contest than in the auctions.

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.