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Spiteful bidding in first-price all-pay auctions

Author

Listed:
  • Kirchkamp, Oliver
  • Liu, Shulin
  • Mill, Wladislaw
  • Wang, Xiangyu

Abstract

We analyze the effects of spite in first-price all-pay auctions. We find that symmetric equilibria of spiteful bidders increase in spite, and that spite could explain overbidding. We compare the symmetric equilibria of spiteful bidders in first-price all-pay auctions with those of spiteful bidders in second-price all-pay auctions, as well as with those in first-price and second-price sealed bid auctions (FPA and SPA).

Suggested Citation

  • Kirchkamp, Oliver & Liu, Shulin & Mill, Wladislaw & Wang, Xiangyu, 2025. "Spiteful bidding in first-price all-pay auctions," Economics Letters, Elsevier, vol. 254(C).
    • Handle: RePEc:eee:ecolet:v:254:y:2025:i:c:s016517652500299x
    DOI: 10.1016/j.econlet.2025.112462
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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