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Journal of Economic Theory and Econometrics
Journal of the Korean Econometric Society
On asymmetry in all-pay auctions
Vol.28, No.1, March 2017, 67–83
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Kiho Yoon
(Department of Economics, Korea University)
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Abstract
This paper examines the role of asymmetry in all-pay auctions. In particular, this paper decomposes a change in players’ valuations into the absolute change and the relative change, and analyzes how these changes affect total expenditures. An increase in the sum of players’ valuations increases total expenditures but an increase in asymmetry among players’ valuations tends to decrease total expenditures under both complete and incomplete information. This paper also studies the optimal all-pay auction design problem.
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Keywords
Asymmetry, All-pay auctions, Deterministic contests |
JEL classification codes
C72, D44, D72, D82 |
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