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Nash Equilibria in a Two-Person Discrete All-Pay Auction with Unfair Tie-Break and Complete Information

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  • Hironori Otsubo

    (Soka University)

Abstract

This note provides a full characterization of the set of Nash equilibria in the two-person all-pay auction with discrete strategy space and complete information where bidders are treated differently in case of a tie. There exist a unique symmetric mixed-strategy equilibrium and a continuum of asymmetric mixed-strategy equilibria. In some of these equilibria the bidder who loses in case of a tie is more likely to win the prize than the bidder who wins in case of a tie.

Suggested Citation

  • Hironori Otsubo, 2015. "Nash Equilibria in a Two-Person Discrete All-Pay Auction with Unfair Tie-Break and Complete Information," Economics Bulletin, AccessEcon, vol. 35(4), pages 245-245.
    • Handle: RePEc:ebl:ecbull:eb-15-00598
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    References listed on IDEAS

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    Cited by:

    1. Li, Zheng, 2017. "Nash equilibria in all-pay auctions with discrete strategy space," Economics Discussion Papers 2017-22, Kiel Institute for the World Economy (IfW Kiel).
    2. Llorente-Saguer, Aniol & Sheremeta, Roman M. & Szech, Nora, 2023. "Designing contests between heterogeneous contestants: An experimental study of tie-breaks and bid-caps in all-pay auctions," European Economic Review, Elsevier, vol. 154(C).
    3. Llorente-Saguer, Aniol & Sheremeta, Roman & Szech, Nora, 2016. "Designing Contests Between Heterogeneous Contestants: An Experimental Study of Tie-Breaks and Bid-Caps in All-Pay Auctions," MPRA Paper 71202, University Library of Munich, Germany.

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    More about this item

    Keywords

    All-pay auction; Complete information; Discrete strategy space; Unfair tie-breaking rule;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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