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arXiv · 2002.02599

All-Pay Auctions with Different Forfeits

Benjamin Kang·James Unwin
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Abstract

In an auction each party bids a certain amount and the one which bids the highest is the winner. Interestingly, auctions can also be used as models for other real-world systems. In an all pay auction all parties must pay a forfeit for bidding. In the most commonly studied all pay auction, parties forfeit their entire bid, and this has been considered as a model for expenditure on political campaigns. Here we consider a number of alternative forfeits which might be used as models for different real-world competitions, such as preparing bids for defense or infrastructure contracts.

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econ.TH

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Benjamin Kang, James Unwin. 2020-02-07. All-Pay Auctions with Different Forfeits. https://doi.org/10.3390/g17010002

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