Note on a Two-Player All-Pay Auction with Asymmetrical Bidders and Incomplete Information

Abstract:     
The present paper analyzes a general class of first-price all-pay auctions where two players have different "bidding technologies" and one bidder has a head start advantage over his/her opponent. Prize values are common knowledge and may be different between the players. Equilibria are characterized for the complete information setting and for the case where there is incomplete asymmetrical information because the handicapped player is uncertain about the fact that the advantage is actually awarded.

Number of Pages in PDF File: 27

Keywords: All-pay auctions, Auction theory, Games with asymmetrical players, Incomplete information games

JEL Classification: C72, D44, D81

working papers series