The Group All-Pay Auction with Heterogeneous Impact Functions

Subhasish Chowdhury and Iryna Topolyan
Additional contact information
Iryna Topolyan: University of Cincinnati

No 69, University of East Anglia Applied and Financial Economics Working Paper Series from School of Economics, University of East Anglia, Norwich, UK.

Abstract: We analyze a group all-pay auction with a group specific public good prize in which one group follows a weakest-link and the other group follows a best-shot impact function. This type of game depicts situations in which the best-shot group is an attacker and the other group is a defender. We show that when the per-capita valuations are equal across groups, there exists a continuum of mixed strategy equilibria in which both groups randomize continuously without a gap over the same interval whose lower bound is zero. There are two further types of equilibria with discontinuous strategies. For the first type, each player in the best-shot group puts mass at the upper bound of the support whereas each player in the other group puts mass at the lower bound of the support. For the second type, players in the best-shot group put masses at both the lower and the upper bounds, while the other group randomizes without an atom. If players in the best-shot group could coordinate on the mass they put at the upper bound of the support, they would want to make it as large as possible (within the relevant range).

Date: 2015-03
New Economics Papers: this item is included in nep-cdm and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ueaeco.github.io/working-papers/papers/afe/UEA-AFE-069.pdf (application/pdf)

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:uea:aepppr:2012_69

Ordering information: This working paper can be ordered from
Reception, School of Economics, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK

Access Statistics for this paper

More papers in University of East Anglia Applied and Financial Economics Working Paper Series from School of Economics, University of East Anglia, Norwich, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Cara Liggins ().