Asymmetric All-Pay Auctions with Two Types
- Date: January 2011
We characterize the unique equilibrium of an asymmetric all-pay auction with incomplete information. The two bidders’ types are independently drawn from different two-point probability distributions: Types as well as probabilities differ among bidders.
Next we apply our results to information disclosure in contests. Recent research shows that bidders do not disclose any information if they can only decide between full disclosure or none. In contrast, we find that bidders always disclose some information if disclosure can be partial.