We study a sequential two-stage all-pay auction with two identical prizes. In each stage, the players compete for one prize and each player can win either one or two prizes. The designer may impose a cap on the players' bids in each of the stages. We analyze the equilibrium in this sequential all-pay auction with bid caps and show that capping the players' bids is profitable for a designer who wishes to maximize the players' expected total bid.
|Number of pages||10|
|State||Published - 1 Apr 2014|
ASJC Scopus subject areas
- Business, Management and Accounting (all)
- Economics and Econometrics