Working Paper No. 641
By Peter Eccles and Nora Wegner
We provide conditions to allow modelling situations of asymmetric information in a tractable manner. In addition, we show a novel relationship between certain games of asymmetric information and corresponding games of symmetric information. This framework establishes links between certain games separately studied in the literature. The class of games considered is defined by scalable preference relations and a scalable information structure. We show that this framework can be used to solve asymmetric contests and auctions with loss aversion.