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Asymmetric all-pay auctions with interdependent valuations

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  • Siegel, Ron

Abstract

I show that a unique equilibrium exists in an asymmetric two-player all-pay auction with a discrete signal structure, correlated signals, and interdependent valuations. The proof is constructive, and the construction can be implemented as a computer program and be used to derive comparative statics. I also characterize the set of equilibria when a reserve price is introduced.

Suggested Citation

  • Siegel, Ron, 2014. "Asymmetric all-pay auctions with interdependent valuations," Journal of Economic Theory, Elsevier, vol. 153(C), pages 684-702.
    • Handle: RePEc:eee:jetheo:v:153:y:2014:i:c:p:684-702
    DOI: 10.1016/j.jet.2014.03.003
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    References listed on IDEAS

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    More about this item

    Keywords

    Contests; All-pay; Auctions; Asymmetries; Interdependent valuations; Correlated signals;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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