Existence of Equilibria in All-Pay Auctions
Stanford Graduate School of Business Research Paper Series No. 2058
15 Pages Posted: 28 Jul 2010
Date Written: July 28, 2010
For an all-pay sealed-bid auction of an item for which each bidder's realized value can depend on every bidder's privately observed signal, existence of equilibria in behavioral strategies is established using only the assumption that bidders' value functions and the density function of signals are positive and continuous on a product of intervals. Such equilibria have atomless distributions of bids and thus are not affected by how tied bids are resolved.
Keywords: auctions, economic theory
JEL Classification: C72, D44
Suggested Citation: Suggested Citation