IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v116y2003i1-2p79-90.html
   My bibliography  Save this article

The All-Pay Auction When a Committee Awards the Prize

Author

Listed:
  • Amegashie, J Atsu

Abstract

There is very little work on the equilibrium of the all-pay auction when the prize is awarded by two or more people. I consider an all-pay auction under committee administration with caps on the bids of the contestants. I show that for any number of committee members and contestants, there exists a pure-strategy equilibrium in which the contestants bid an amount equal to a suitably chosen cap. I argue that the cap is not an artificial restriction on the game, given that there are caps on political lobbying in the real world. I find that committee administration could result in higher aggregate expenditures, even if there is some probability that the committee will not award the prize. The intuition for this result is that the inclusion of additional administrators relaxes the effect of caps on lobbying. That is, caps on lobbying tend to be more effective the smaller is the size of the committee. Caps may also be a solution to the problem of majoritarian cycles in all-pay auctions under committee administration. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Amegashie, J Atsu, 2003. "The All-Pay Auction When a Committee Awards the Prize," Public Choice, Springer, vol. 116(1-2), pages 79-90, July.
    • Handle: RePEc:kap:pubcho:v:116:y:2003:i:1-2:p:79-90
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0048-5829/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pastine, Tuvana & Pastine, Ivan, 2006. "Politician Preferences and Caps on Political Lobbying," CEPR Discussion Papers 5913, C.E.P.R. Discussion Papers.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:116:y:2003:i:1-2:p:79-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.