Potential competition in preemption games

► We study a preemption game in which two potential competitors come into play at random secret times. ► The presence of a competitor is revealed to her opponent only when the former moves. ► All equilibria lead to the same distribution of moving times; we explicitly construct an equilibrium. ► Competition is nonmonotonic over time, and private information reduces rent dissipation. ► Our results have a natural interpretation in terms of eroding reputations.