Gavious, Arieh; Moldovanu, Benny; Sela, Aner - Sonderforschungsbereich 504 "Rationalitätskonzepte, …; … - 2000
We study contests where several privately informed agents bid for a price. All bidders bear a cost of bidding that is an increasing function of their bids, and, moreover, bids may be capped. We show that, regardless of the number of bidders, if agents have linear or concave cost functions then...