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An Analysis of the War of Attrition and the All-Pay Auction

Author

Listed:
  • Vijay Krishna

    (Department of Economics, Penn State University)

  • John Morgan

    (Department of Economics, Penn State University)

Abstract
We study the war of attrition and the all-pay auction when players' signals are affiliated and symmetrically distributed. We (a) find sufficient conditions for the existence of symmetric monotonic equilibrium bidding strategies; and (b) examine the performance of these auction forms in terms of the expected revenue accruing to the seller. Under our conditions the war of attrition raises greater expected revenue than all other known sealed bid auction forms.

Suggested Citation

  • Vijay Krishna & John Morgan, 1994. "An Analysis of the War of Attrition and the All-Pay Auction," Game Theory and Information 9409002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:9409002
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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