A number of contestants randomly arrives according to a Poisson distribution. Under population uncertainty, a contest designer considers whether or not to reveal the number of players to bidders. We show that for the expected revenue, the two policies are equivalent, but for the expected winner's payment, the revealing policy dominates if the expected number of bidders is sufficiently large, whereas the concealing policy dominates if it is low.
Bibliographical noteFunding Information:
Kim’s research was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MSIT) (No. 2020R1A2B5B01001864 ). Yoo acknowledges financial support from a Korea University research grant.
© 2021 Elsevier B.V.
- Environmental equivalence
- Population uncertainty
ASJC Scopus subject areas
- Economics and Econometrics