Less fighting than expected — experiments with wars of attrition and all-pay auctions
AbstractThe paper compares with the help of experiments dynamic and static wars of attrition (i.e. second price all-pay auctions) and first-price all-pay auctions. While most experimental studies find overbidding in first-price all-pay auctions, we find underbidding in a similar institution, the war of attrition, in particular if the bidding process is dynamic. 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 InfoPaper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number 0607.
Date of creation: Jun 2006
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War of attrition; dynamic bidding; all-pay auction; stabilisation; volunteer’s dilemma; experiment;
Other versions of this item:
- Hannah Hörisch & Oliver Kirchkamp, 2008. "Less fighting than expected - experiments with wars of attrition and all-pay auctions," Jena Economic Research Papers 2008-023, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-10-21 (All new papers)
- NEP-EXP-2006-10-21 (Experimental Economics)
- NEP-GTH-2006-10-21 (Game Theory)
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