Bos, Olivier (2015): Charity Auctions for the Happy Few.
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Recent literature has shown that all-pay auctions raise more money for charity than either winner-pay auctions or lotteries. We demonstrate that first-price and second-price winner- pay auctions have a better revenue performance than first-price and second-price all-pay auctions when bidders are sufficiently asymmetric. Lotteries can also provide higher revenue than all-pay auctions. To prove this, we consider a framework with complete information. Complete information is helpful and may reflect events that occur, for instance, in a local service club (such as a voluntary organization) or at a show-business dinner.
|Item Type:||MPRA Paper|
|Original Title:||Charity Auctions for the Happy Few|
|Keywords:||All-pay auctions, charity, complete information, externalities|
|Subjects:||D - Microeconomics > D4 - Market Structure, Pricing, and Design > D44 - Auctions
D - Microeconomics > D6 - Welfare Economics > D62 - Externalities
D - Microeconomics > D6 - Welfare Economics > D64 - Altruism ; Philanthropy
|Depositing User:||Olivier Bos|
|Date Deposited:||05. Dec 2015 14:15|
|Last Modified:||05. Dec 2015 15:00|
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