CONFLICT BETWEEN TWO CRITERRIA OF REVENUE AND EFFICIENCY IN TWO KINDS OF ALL-PAY AUCTIONS

摘要

This paper reviews the equilibria and revenue equivalence in all-pay auctions with complete and incomplete information . The study shows that only in all-pay auctions with complete information , when v_1 > v_2 = ... = v_m > v_(m+1) > ... > v_n and 3 ≤ m ≤ n, revenue equivalence breaks down and conflict exists between two criterions of revenue and efficiency. Then a sort of phenomenon occurs: a rent-seeker may benefit from precluding the bidders by valuing the prize from participating in the game. Finally, a model of working tournament is constructed to demonstrate the specific process in this paper.