The All-Pay Auction with Non-Monotonic Payoff

Subhasish Chowdhury

No 2010-06, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: We analyse an endogenous prize all-pay auction under complete information where it is possible that none of the bidders wins and the winning payoff becomes non-monotonic in own bid. We derive the conditions for the existence of pure strategy equilibria and fully characterize the unique mixed strategy equilibrium when pure strategy equilibria do not exist. The highvaluation bidder places two distinct mass points in his equilibrium mixed strategy and the equilibrium support of the low-valuation bidder is not continuous. Under common valuation, in the equilibrium mixed strategy both bidders place mass points at the same point of the support. Possible applications are discussed.

Keywords: Contests; All-pay auction; No-win; Non-monotonicity; Pure Strategy (search for similar items in EconPapers)
JEL-codes: C62 C72 D44 D74 (search for similar items in EconPapers)
Date: 2010-01-01
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Citations: View citations in EconPapers (1)

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Journal Article: The All‐Pay Auction with Nonmonotonic Payoff (2017)
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