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Aggressive Bidding of Weak Bidders in All-Pay Auction

Author

Listed:
  • Yizhaq Minchuk

    (Department of Industrial Engineering and Management, Shamoon College of Engineering, Israel)

Abstract

We study an asymmetric all-pay auction with a general utility function. We show that high-type bidders in all-pay auction with lower density, are bidding more aggressively than bidders with higher density. This result is contradictory to the result in Parreiras and Rubinchik (2010) on aggressive bidding of strong bidders.

Suggested Citation

  • Yizhaq Minchuk, 2014. "Aggressive Bidding of Weak Bidders in All-Pay Auction," Economics Bulletin, AccessEcon, vol. 34(3), pages 1665-1668.
    • Handle: RePEc:ebl:ecbull:eb-14-00138
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    References listed on IDEAS

    as
    1. Fibich, Gadi & Oren, Gal, 2014. "An elementary proof of the common maximal bid in asymmetric first-price and all-pay auctions," Economics Letters, Elsevier, vol. 122(2), pages 190-191.
    2. Govindan, Srihari & Wilson, Robert, 2010. "Existence of Equilibria in All-Pay Auctions," Research Papers 2058, Stanford University, Graduate School of Business.
    3. Yizhaq Minchuk, 2013. "Low and High Types of Bidders in Asymmetric Auctions with A General Utility Function," Economics Bulletin, AccessEcon, vol. 33(2), pages 1328-1332.
    4. Amann, Erwin & Leininger, Wolfgang, 1996. "Asymmetric All-Pay Auctions with Incomplete Information: The Two-Player Case," Games and Economic Behavior, Elsevier, vol. 14(1), pages 1-18, May.
    5. Parreiras, Sérgio O. & Rubinchik, Anna, 2010. "Contests with three or more heterogeneous agents," Games and Economic Behavior, Elsevier, vol. 68(2), pages 703-715, March.
    6. Fibich, Gadi & Gavious, Arieh & Sela, Aner, 2002. "Low and high types in asymmetric first-price auctions," Economics Letters, Elsevier, vol. 75(2), pages 283-287, April.
    7. Athey, Susan, 2001. "Single Crossing Properties and the Existence of Pure Strategy Equilibria in Games of Incomplete Information," Econometrica, Econometric Society, vol. 69(4), pages 861-889, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Asymmetry; all-pay auction.;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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