All-pay auctions with ties

B-Tier
Journal: Economic Theory
Year: 2022
Volume: 74
Issue: 4
Pages: 1183-1231

Authors (3)

Alan Gelder (not in RePEc) Dan Kovenock (Chapman University) Brian Roberson (not in RePEc)

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

Abstract We study the two-player, complete information all-pay auction in which a tie ensues if neither player outbids the other by more than a given amount. In the event of a tie, each player receives an identical fraction of the winning prize. Players thus engage in two margins of competition: losing versus tying, and tying versus winning. Two pertinent parameters are the margin required for victory and the value of tying relative to winning. We fully characterize the set of Nash equilibria for the entire parameter space. For much of the parameter space, there is a unique Nash equilibrium which is also symmetric. Equilibria typically involve randomizing over multiple disjoint intervals, so that in essence players randomize between attempting to tie and attempting to win. In equilibrium, expected bids and payoffs are non-monotonic in both the margin required for victory and the relative value of tying.

Technical Details

RePEc Handle
repec:spr:joecth:v:74:y:2022:i:4:d:10.1007_s00199-019-01195-7
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25