Handicaps in incomplete information all-pay auctions with a diverse set of bidders

B-Tier
Journal: European Economic Review
Year: 2013
Volume: 64
Issue: C
Pages: 98-110

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

In many contests, a subset of contestants is granted preferential treatment which is presumably intended to be advantageous. Examples include affirmative action and biased procurement policies. In this paper, however, I show that some of the supposed beneficiaries may in fact become worse off when the favored group is diverse. The reason is that the other favored contestants become more aggressive, which may outweigh the advantage that is gained over contestants who are handicapped. The contest is modeled as an incomplete-information all-pay auction in which contestants have heterogenous and possibly non-linear cost functions.

Technical Details

RePEc Handle
repec:eee:eecrev:v:64:y:2013:i:c:p:98-110
Journal Field
General
Author Count
1
Added to Database
2026-01-25