An experimental investigation of overdissipation in the all pay auction

B-Tier
Journal: European Economic Review
Year: 2010
Volume: 54
Issue: 8
Pages: 974-997

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Pervasive overbidding represents a well-documented feature of all-pay auctions. Aggregate bids exceed Nash predictions in laboratory experiments, and individuals often submit bids that guarantee negative profits. This paper examines three factors that may reduce pervasive overbidding: (a) repetition (experience), (b) reputation (strangers vs. partners), and (c) active participation. Reputation and repetition reduce aggregate overdissipation, but they eliminate it only in conjunction with active participation.

Technical Details

RePEc Handle
repec:eee:eecrev:v:54:y:2010:i:8:p:974-997
Journal Field
General
Author Count
3
Added to Database
2026-01-25