DP8949 Multi-Stage Sequential All-Pay Auctions

Author(s): Ella Segev, Aner Sela
Publication Date: April 2012
Keyword(s): All-pay auctions, Sequential contests
JEL(s): D44
Programme Areas: Industrial Organization
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=8949

We study multi-stage sequential all-pay contests (auctions) where heterogeneous contestants are privately informed about a parameter (ability) that affects their cost of effort. We characterize the sub-game perfect equilibrium of these multi-stage sequential all-pay contests and analyze the effect of the number of contestants, their types, and their order on the expected highest effort.