Munich Personal RePEc Archive

A note on the Exclusion Principle

Bertoletti, Paolo (2006): A note on the Exclusion Principle.

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Abstract

According to the so-called Exclusion Principle (introduced by Baye et alii, 1993), it might be profitable for the seller to reduce the number of fully-informed potential bidders in an all-pay auction. We show that it does not apply if the seller regards the bidders’ private valuations as belonging to the class of identical and independent distributions with a monotonic hazard rate.

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