Abstract
We study all-pay auctions with multiple prizes. The players have the same value for all the certain prizes except for one uncertain prize for which each player has a private value. We characterize the equilibrium strategy and show that, independent of the ranking of the uncertain prize, if the uncertain prize is not the lowest one, a player's effort as well as his expected payoff increase in his value for the uncertain prize. Otherwise, if this prize is the lowest one, we obtain that a player's effort may decrease in his value for the uncertain prize but his expected utility increases.
Original language | English |
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Pages (from-to) | 130-134 |
Number of pages | 5 |
Journal | Games and Economic Behavior |
Volume | 88 |
DOIs | |
State | Published - 1 Nov 2014 |
Keywords
- All-pay auctions
- Contests
- Uncertain prizes
ASJC Scopus subject areas
- Finance
- Economics and Econometrics