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Less fighting than expected - experiments with wars of attrition and all-pay auctions

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  • Hannah Hörisch

    (University of Munich)

  • Oliver Kirchkamp

    ()
    (University of Jena, School of Economics)

Abstract

We use experiments to compare dynamic and static wars of attrition (i.e. second-price all-pay auctions) and first-price all-pay auctions. Many other studies find overbidding in first-price all-pay auctions. We can replicate this property. In wars of attrition, however, we find systematic underbidding. We study bids and revenue in different experimental frames and matching procedures and draw a link to the literature on stepwise linear bidding functions.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-023.

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Date of creation: 18 Mar 2008
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Handle: RePEc:jrp:jrpwrp:2008-023

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Keywords: War of attrition; dynamic bidding; all-pay auction; stabilisation; volunteer's dilemma; experiment;

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Cited by:
  1. HHironori Otsubo, 2012. "Contests with Incumbency Advantages: An Experiment Investigation of the Effect of Limits on Spending Behavior and Outcome," Jena Economic Research Papers 2012-020, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Boudreau, James W. & Shunda, Nicholas, 2012. "On the evolution of prize perceptions in contests," Economics Letters, Elsevier, vol. 116(3), pages 498-501.

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