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Mapping an information design game into an all-pay auction.

Oleg Muratov1

  • 1University of Bern, Bern, Switzerland.

Review of Economic Design
|September 15, 2025
PubMed
Summary

This study introduces a novel mapping between information design games and all-pay auctions. This connection simplifies finding game equilibria and analyzing auction outcomes.

Area of Science:

  • Game Theory
  • Information Economics
  • Auction Theory

Background:

  • Information design games involve strategic information revelation.
  • All-pay auctions are common economic mechanisms with competitive bidding.

Purpose of the Study:

  • Establish a formal mapping between information design games and all-pay auctions.
  • Utilize this mapping to derive equilibria in information design games.
  • Analyze the impact of tie-breaking rules on auction outcomes.

Main Methods:

  • Formal mathematical modeling.
  • Characterization of a game-theoretic mapping.
  • Comparative statics analysis.

Main Results:

  • A direct correspondence between information design games and all-pay auctions is established.
Keywords:
All-pay auctionsContestsInformation designProject selectionSender–receiver

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  • The mapping facilitates equilibrium computation in information design games.
  • Tie-breaking rules significantly influence posterior distributions and receiver payoffs.
  • Conclusions:

    • The established mapping provides a powerful tool for analyzing information design games.
    • The findings offer insights into the strategic implications of tie-breaking rules in auctions.
    • This research bridges two distinct fields within economic theory.