A Class of All-pay Auctions with Affiliated Information
AbstractWe study an auction mechanism combining the war of attrition and the all-pay auction under the assumption that buyers' signals are affiliated. We provide a sufficient condition which guarantees the existence of a symmetric, increasing equilibrium bidding strategy, but rules out full extraction of buyers' surplus by the seller. We develop revenue comparison between the combined mechanism, the war of attrition and the all-pay auction.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (REL - Recherches Economiques de Louvain) with number 2001012.
Date of creation: 01 Mar 2001
Date of revision:
All-pay auctions; War of Attrition; Affilliated values;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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Game Theory and Information
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