EconPapers    
Economics at your fingertips  
 

Simultaneous versus sequential all-pay auctions: an experimental study

Lian Jian (), Zheng Li () and Tracy Xiao Liu ()
Additional contact information
Lian Jian: University of Southern California
Zheng Li: Tsinghua University
Tracy Xiao Liu: Tsinghua University

Experimental Economics, 2017, vol. 20, issue 3, 648-669

Abstract: Abstract While both simultaneous and sequential contests are mechanisms used in practice such as crowdsourcing, job interviews and sports contests, few studies have directly compared their performance. By modeling contests as incomplete information all-pay auctions with linear costs, we analytically and experimentally show that the expected maximum effort is higher in simultaneous contests, in which contestants choose their effort levels independently and simultaneously, than in sequential contests, in which late entrants make their effort choices after observing all prior participants’ choices. Our experimental results also show that efficiency is higher in simultaneous contests than in sequential ones. Sequential contests’ efficiency drops significantly as the number of contestants increases. We also discover that when participants’ ability follows a power distribution, high ability players facing multiple opponents in simultaneous contests tend to under-exert effort, compared to theoretical predictions. We explain this observation using a simple model of overconfidence.

Keywords: Sequential all-pay auctions; Experiment (search for similar items in EconPapers)
JEL-codes: C7 C91 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10683-016-9504-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:expeco:v:20:y:2017:i:3:d:10.1007_s10683-016-9504-1

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10683/PS2

Access Statistics for this article

Experimental Economics is currently edited by David J. Cooper, Lata Gangadharan and Charles N. Noussair

More articles in Experimental Economics from Springer, Economic Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-05-15
Handle: RePEc:kap:expeco:v:20:y:2017:i:3:d:10.1007_s10683-016-9504-1