Large all-pay auctions with IPV bidders

Pauli Murto and Juuso Välimäki

Journal of Economic Theory, 2017, vol. 169, issue C, 629-640

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.

Keywords: All-pay auction; Large auctions (search for similar items in EconPapers)
JEL-codes: D44 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:169:y:2017:i:c:p:629-640

DOI: 10.1016/j.jet.2017.03.008

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