Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5072320 | Games and Economic Behavior | 2010 | 19 Pages |
Abstract
This paper studies the problem of information revelation in a multi-stage tournament where the agents' effort in each stage gives rise to a stochastic performance signal privately observed by the principal. The principal controls the agents' effort incentive through the use of a feedback policy, which transforms his private information into a public announcement. The optimal feedback policy is one that maximizes the agents' expected effort. The paper identifies when the principal should use the no-feedback policy that reveals no information, or the full-feedback policy that reveals all his information.
Related Topics
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Authors
Masaki Aoyagi,