Speaker(s)
Olivier Bos (Paris School of Economics and Université Catholique de Louvain)
Date
2009-06-19
Location
Amsterdam

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