Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5071748 | Games and Economic Behavior | 2014 | 5 Pages |
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
Authors
Yizhaq Minchuk, Aner Sela,