Abstract
This note analyzes different types of all-pay auctions when the number of bidders becomes large. We compute the distributions of the highest bids for the first-price all pay auction and we show that the expected payment made by the winning bidder converges to half of the total payments. In the second-price all-pay auction (the war of attrition), the highest bid amounts to about 35.5% of the total revenues. We also compute the payments for all-pay auctions with multiple prizes.
Original language | English |
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Pages (from-to) | 629-640 |
Number of pages | 12 |
Journal | Journal of Economic Theory |
Volume | 169 |
DOIs | |
Publication status | Published - 1 May 2017 |
MoE publication type | A1 Journal article-refereed |
Keywords
- All-pay auction
- Large auctions