Players with information advantage in contests have higher payoffs despite winning less.
The article discusses how having more information in competitive contests can affect players' efforts and payoffs. When players have the same information, effort decreases (increases) as they become better informed. In two-player contests, the player with more information exerts less (more) effort than their opponent. When effort costs are linear, players exert the same effort regardless of information, but the player with an information advantage earns more than their opponent, even if they win less often.