All-pay auctions with budget constraints and fair insurance
AbstractWe study all-pay auctions with budget-constrained bidders who have access to fair insurance before bidding simultaneously over a prize. We characterize a unique equilibrium for the special cases of two bidders and one prize, show existence and a heuristic for finding an equilibrium in the case of multiple bidders and multiple prizes. We end with an example of non-uniqueness of equilibria for the general case of multiple prizes and multiple players.
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Bibliographic InfoPaper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2006-13.
Date of creation: Jul 2006
Date of revision:
all-pay auctions; fair lotteries; political campaigning; oligopoly; regional competition; patent races;
Other versions of this item:
- Uwe Dulleck & Paul Frijters & Konrad Podczeck, 2006. "All-pay Auctions with Budget Constraints and Fair Insurance," Vienna Economics Papers 0605, University of Vienna, Department of Economics.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-12 (All new papers)
- NEP-GTH-2006-08-12 (Game Theory)
- NEP-IAS-2006-08-12 (Insurance Economics)
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