A form of auction in which the highest bidder is awarded the object, but all bidders pay the auctioneer their bids.
This differs from traditional first price auctions in which only the winner pays the auctioneer his or her bid.
All-pay auctions are often used to model political races or patent races among firms. A probabilistic version of the all-pay auction is the Chinese auction.
created: 24 January 2007
HOW TO CITE THIS ENTRY
- To learn more:
- See news articles on auctions.
- Try a winner's curse applet on the applets page.
- Read about auction experiments at e-Economics.net.
- Learn about auctions by reading lecture notes.