Bertoletti, Paolo (2006): A note on the Exclusion Principle.
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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.
|Item Type:||MPRA Paper|
|Institution:||Dipartimento di Economia Politica e Metodi quantitativi, University of Pavia|
|Original Title:||A note on the Exclusion Principle|
|Keywords:||all-pay auctions; Exclusion Principle; monotonic hazard rate; economic theory of lobbying|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
|Depositing User:||Paolo Bertoletti|
|Date Deposited:||07. Dec 2006|
|Last Modified:||24. Feb 2013 10:47|
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