Uncertainty boosts uninformed player's investment but hurts informed player's payoff
The article explores how having different levels of information in a competition affects the players' strategies and outcomes. It compares situations where one player knows more than the other to when both players have equal information. The study shows that uncertainty can lead the less informed player to invest more effort, but it can also reduce the overall rewards. Interestingly, sometimes it is better for the well-informed player if the other player knows their level of skill. The research also looks at different scenarios where players reveal or hide their information before the competition starts.