All-Pay Auctions with Different Forfeits
Abstract
In an auction, each party bids a certain amount, and the one who bids the highest is the winner. Interestingly, auctions can also be used as models for other real-world systems. In an all-pay auction all parties must pay a forfeit for bidding. In the most commonly studied all-pay auction, parties forfeit their entire bid, and this has been considered as a model for expenditure on political campaigns. Here, we consider a number of alternative forfeits that might be used as models for different real-world competitions, such as preparing bids for defense or infrastructure contracts.
Fields of Study & Subjects
Auction Theory and Applications
Consumer Market Behavior and Pricing
Supply Chain and Inventory Management
Publication details
- Journal / source
- Games
- Volume
- 17
- Issue
- 1
- Pages
- 2–2
- Publication date
- 9 January 2026
- Language
- EN