All-pay auctions with resale
AbstractWe study equilibria of first- and second-price all-pay auctions with resale when players’ signals are affiliated and symmetrically distributed. We show that existence of resale possibilities introduces an endogenous element to players’ valuations and creates a signaling incentive for players. We characterize symmetric bidding equilibria for both firstand second-price all-pay auctions with resale and provide sufficient conditions for existence of symmetric equilibria. Under our conditions we show that second-price all-pay auctions generate no less expected revenue than first-price all-pay auctions with resale. The initial seller could benefit from publicly disclosing his private information which is affiliated with players’ signals.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11463.
Date of creation: Oct 2006
Date of revision: Oct 2007
all-pay auction; resale;
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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