Theodore L Turocy (University of East Anglia), 3 March, 2016, 4:30pm, DUBS 240

Speaker: Prof Dr Theodore L Turocy, University of East Anglia 

Title: Tu mihi soli places: An experiment on the competitiveness of all-pay auctions with private information  

Date & Time: 3 March (Thursday), 4:30-5:45 PM

Venue:  Durham University Business School (Room information to be announced)  

Abstract:

In all-pay auctions with affiliated types, the implications of being of a “higher” type can be complex. Having a high assessment of the value of the prize is good news, but only if the other participants in the contest are not too likely to believe the same. In a laboratory experiment, we study behavior in both private-values and common-values settings. We vary the degree of correlation between types. While bidding is consistently aggressive across treatments, we find general support of the comparative statics of Bayes-Nash equilibrium for private values. In constrast, behavior in common values settings in which bidders have very noisy information about the value of the prize differs greatly from the equilibrium predictions. 

Last modified: Mon, 14 Mar 2016 15:15:10 GMT