Article ID Journal Published Year Pages File Type
5071748 Games and Economic Behavior 2014 5 Pages PDF
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.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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