strategically distorted information. This ambiguity about the type of spy gives rise to a non-standard signaling problem where both …

This paper analyzes the signaling effect of bidding in a two-round elimination contest. Before the final round, bids in … final round. I analyze this signaling effect and characterize the equilibrium in this game. Compared to the benchmark model …, in which private valuations are revealed automatically before the final round and thus no signaling of bids takes place …