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Charitable asymmetric bidders

Author

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  • Olivier Bos

Abstract

Recent papers show that the all‐pay auction is better at raising money for charity than the first‐price auction with symmetric bidders under incomplete information. Yet, this result is lost with sufficiently asymmetric bidders under complete information. In this paper, we consider a framework on charity auctions with asymmetric bidders under some incomplete information. We find that the all‐pay auction still raises more money than the first‐price auction. Thus, the all‐pay auction should be seriously considered when one wants to organize a charity auction.

Suggested Citation

  • Olivier Bos, 2020. "Charitable asymmetric bidders," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(2), pages 320-337, April.
    • Handle: RePEc:bla:jpbect:v:22:y:2020:i:2:p:320-337
    DOI: 10.1111/jpet.12406
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    Cited by:

    1. is not listed on IDEAS
    2. Wasser, Cédric, 2013. "Bilateral k+1-price auctions with asymmetric shares and values," Games and Economic Behavior, Elsevier, vol. 82(C), pages 350-368.

    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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