All-Pay Auctions with Polynomial Rewards

Olivier Bos and Martin Ranger

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines a perfectly discriminating contest (all-pay auction) with two asymmetric players. We focus on unordered valuations. Valuations are endogenous (polynomial functions) and depend on the effort each player invests in the contest. The shape of the valuation function is common knowledge and differs between the contestants. Some key properties of R&D races, lobbying activity and sport contests are captured by this framework. After analyzing the unique mixed strategy equilibrium, we derive a closed form of the expected expenditure of both players. We characterize the expected expenditure by means of incomplete Beta functions.

Keywords: All-pay auctions; contests (search for similar items in EconPapers)
JEL-codes: D44 D72 (search for similar items in EconPapers)
Date: 2013-05-11
New Economics Papers: this item is included in nep-mic
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https://mpra.ub.uni-muenchen.de/47587/1/MPRA_paper_47587.pdf original version (application/pdf)

Related works:
Journal Article: All-Pay Auctions with Polynomial Rewards (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:47587

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