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Non-monotoniticies and the all-pay auction tie-breaking rule

  • Aloisio Araujo

    ()

  • Luciano Castro

    ()

  • Humberto Moreira

    ()

Discontinuous games, such as auctions, may require special tie-breaking rules to guarantee equilibrium existence. The best results available ensure equilibrium existence only in mixed strategy with endogenously defined tie-breaking rules and communication of private information. We show that an all-pay auction tie-breaking rule is sufficient for the existence of pure strategy equilibrium in a class of auctions. The rule is explicitly defined and does not require communication of private information. We also characterize when special tie-breaking rules are really needed.

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File URL: http://hdl.handle.net/10.1007/s00199-007-0249-0
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Article provided by Springer in its journal Economic Theory.

Volume (Year): 35 (2008)
Issue (Month): 3 (June)
Pages: 407-440

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Handle: RePEc:spr:joecth:v:35:y:2008:i:3:p:407-440
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  17. Levin, Jonathan & Athey, Susan, 2001. "Information and Competition in U.S. Forest Service Timber Auctions," Scholarly Articles 3612768, Harvard University Department of Economics.
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