This paper theoretically and experimentally studies the role of two behavioral biases in all-pay auctions for charity. The theory is developed to predict the effect of loss aversion in the first-price all-pay auction and sunk cost sensitivity in the war of attrition. Using controlled laboratory...

HighlightsSemi-nonparametric Estimation of Secret Reserve Prices in AuctionsThis letter proposes an estimation method for the distribution of unobservable secret seller reserve prices in auctions. Within the symmetric independent private values model, I construct a two stage estimate via the...

Auctions that generate public good benefits for bidders through revenue, such as those run by a charity, do not adhere to the revenue equivalence theorem. Instead, theory predicts that all-pay auctions will generate greater expected revenues than winner-pay mechanisms. However, this paper...