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This paper examines the effects of disclosing the actual number of bidders in contests with endogenous stochastic entry. I study a standard all-pay auction in which bidders' valuations are commonly known but their participation decisions private. Each potential bidder has to incur an entry cost...
Persistent link: https://www.econbiz.de/10012842808
This paper investigates whether a contest organizer should disclose private information about bidders' abilities in an all-pay auction. Bidders' abilities are affiliated through an underlying state of the world and are accessible by the contest organizer. The organizer decides whether to...
Persistent link: https://www.econbiz.de/10012868188
We propose a sequential auction mechanism for a single object in which the seller jointly determines the allocation and the disclosure policy. A sequential disclosure rule is shown to implement an ascending price auction in which each losing bidder learns his true valuation, but the winning...
Persistent link: https://www.econbiz.de/10013045254
We consider the design of an optimal auction in which the seller can determine the allocation and the disclosure rule of the mechanism. Thus, in contrast to the standard analysis of a optimal auctions, the seller can explicitly design the disclosure of the information received by each bidder as...
Persistent link: https://www.econbiz.de/10013079579
We examine the effect of publicly disclosing or concealing bidders' types in an all-pay auction with a common bid cap. We call partial (full) disclosure policy the setup where the contest designer's disclosure policy is (not) contingent on type realization. Despite a bid cap possibly increasing...
Persistent link: https://www.econbiz.de/10012827848
This paper contributes to the literature that examines the effects of disclosing the actual number of bidders in contests with stochastic entry by considering resource constraint. We study an all-pay auction with complete information. The auction entails one prize and $n$ potential bidders. Each...
Persistent link: https://www.econbiz.de/10012848817
We study a stochastic auction in a multi-items and unit-demand setting where bidders have one-dimensional type spaces. In a usual Pareto-efficient auction such as the VCG auction, items are allocated deterministically to bidders depending on their bids. However, even if an auctioneer implements...
Persistent link: https://www.econbiz.de/10014092334
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This paper analyzes the signaling effect of bidding in a two-round elimination contest. Before the final round, bids in the preliminary round are revealed and act as signals of the contestants' private valuations. Depending on his valuation, a contestant may have an incentive to bluff or sandbag...
Persistent link: https://www.econbiz.de/10003768858