Abstract

We provide a simple example demonstrating that the unconditional revelation information in a war of attrition with private budget constraints can decrease expected revenue. Our example suggests that information non-revelation can counteract the adverse revenue impact of budget constraints and almost counterbalance their otherwise negative impact.

Citation

Kotowski, Maciej, and Fei Li. "The War of Attrition and the Revelation of Valuable Information." Economics Letters 124.3 (September 2014): 420–423.