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All-pay auctions with resale

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  • Sui, Yong

Abstract

We study equilibria of first- and second-price all-pay auctions with resale when players’ signals are affiliated and symmetrically distributed. We show that existence of resale possibilities introduces an endogenous element to players’ valuations and creates a signaling incentive for players. We characterize symmetric bidding equilibria for both firstand second-price all-pay auctions with resale and provide sufficient conditions for existence of symmetric equilibria. Under our conditions we show that second-price all-pay auctions generate no less expected revenue than first-price all-pay auctions with resale. The initial seller could benefit from publicly disclosing his private information which is affiliated with players’ signals.

Suggested Citation

  • Sui, Yong, 2006. "All-pay auctions with resale," MPRA Paper 11463, University Library of Munich, Germany, revised Oct 2007.
    • Handle: RePEc:pra:mprapa:11463
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    File URL: https://mpra.ub.uni-muenchen.de/11463/1/MPRA_paper_11463.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    all-pay auction; resale;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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