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Charity auctions for the happy few

Author

Listed:
  • Olivier Bos

    (LEMMA - Laboratoire d'économie mathématique et de microéconomie appliquée - UP2 - Université Panthéon-Assas)

Abstract

Recent literature has shown that all-pay auctions raise more money for charity than winner-pay auctions. We demonstrate that the first-price and second-price winner-pay auctions outperform the first-price and second-price all-pay auction when bidders are sufficiently asymmetric. To prove it, we consider a framework with complete information. Complete information is realistic and corresponds to events that occur, for instance, in a local service club (such as a voluntary organization) or in a show business dinner.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Olivier Bos, 2016. "Charity auctions for the happy few," Post-Print hal-04149234, HAL.
    • Handle: RePEc:hal:journl:hal-04149234
    DOI: 10.1016/j.mathsocsci.2015.12.002
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    Cited by:

    1. is not listed on IDEAS
    2. Gregor, Martin, 2012. "Contest for power in organizations," Economics Letters, Elsevier, vol. 114(3), pages 280-283.
    3. Fu, Qiang & Lu, Jingfeng, 2013. "Competitive effect of cross-shareholdings in all-pay auctions with complete information," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 267-277.
    4. Paan Jindapon & Zhe Yang, 2020. "Free riders and the optimal prize in public‐good funding lotteries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1289-1312, September.
    5. Bos, Olivier, 2016. "Charity auctions for the happy few," Mathematical Social Sciences, Elsevier, vol. 79(C), pages 83-92.
    6. Bos, Olivier, 2011. "How lotteries outperform auctions," Economics Letters, Elsevier, vol. 110(3), pages 262-264, March.

    More about this item

    JEL classification:

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

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