Charitable asymmetric bidders

Olivier, Bos (2011): Charitable asymmetric bidders.

Abstract

Recent papers show that all-pay auctions are better at raising money for charity than first-price auctions with symmetric bidders and under incomplete information. Yet, this result is lost with sufficiently asymmetric bidders and under complete information. In this paper, we consider a framework on charity auctions with asymmetric bidders under some incomplete information. We find that all-pay auctions still earn more money than first-price auction. Thus, all-pay auctions should be seriously considered when one wants to organize a charity auction.

• Item Type: MPRA Paper
• Language: English
• Keywords: All-pay auctions, Charity, Externalities
• Subjects: D - Microeconomics > D6 - Welfare Economics > D62 - Externalities; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D44 - Auctions; D - Microeconomics > D6 - Welfare Economics > D64 - Altruism ; Philanthropy

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