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A tractable group all-pay auction

Author

Listed:
  • Barbieri, Stefano
  • Topolyan, Iryna

Abstract

We consider group all-pay auctions with a wide range of effort complementarity in which teammates coordinate efforts via a group-specific correlation device. Under mild regularity conditions, there is a unique equilibrium effort distribution, independent of the distribution of the correlation device. We characterize this unique distribution of efforts and analyze the effects of value dispersion, degree of complementarity, and group size. We show that this effort distribution can be achieved without correlation devices as the equilibrium outcome of a cheap talk game in which players engage in costless unmediated preplay communication.

Suggested Citation

  • Barbieri, Stefano & Topolyan, Iryna, 2025. "A tractable group all-pay auction," Journal of Economic Theory, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:jetheo:v:226:y:2025:i:c:s0022053125000626
    DOI: 10.1016/j.jet.2025.106016
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    Keywords

    All-pay auction; Correlated equilibrium; Constant elasticity of substitution;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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