Second-Price All-Pay Auctions and Best-Reply Matching Equilibria Gisèle Umbhauer To cite this version: Gisèle Umbhauer. Second-Price All-Pay Auctions and Best-Reply Matching Equilibria. International Game Theory Review, World Scientific Publishing, 2019, 21 (02), 10.1142/S0219198919400097. hal- 03164468 HAL Id: hal-03164468 https://hal.archives-ouvertes.fr/hal-03164468 Submitted on 9 Mar 2021 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. SECOND-PRICE ALL-PAY AUCTIONS AND BEST-REPLY MATCHING EQUILIBRIA Gisèle UMBHAUER. Bureau d’Economie Théorique et Appliquée, University of Strasbourg, Strasbourg, France
[email protected] Accepted October 2018 Published in International Game Theory Review, Vol 21, Issue 2, 40 pages, 2019 DOI 10.1142/S0219198919400097 The paper studies second-price all-pay auctions - wars of attrition - in a new way, based on classroom experiments and Kosfeld et al.’s best-reply matching equilibrium. Two players fight over a prize of value V, and submit bids not exceeding a budget M; both pay the lowest bid and the prize goes to the highest bidder. The behavior probability distributions in the classroom experiments are strikingly different from the mixed Nash equilibrium.