Bidding behavior in a symmetric Chinese auction

Bidding behavior in a symmetric Chinese auction

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This paper purposes a symmetric all-pay auction where the bidders compete neither for an object nor the object itself but for a lottery on receive.That lottery is determined endogenously through the bids.This auction is known as chance auction or more Course a pied - Femme - Vetements - Pantalon - Lamine popularly as Chinese auction.

The model considers the possibility that for some bidders the optimal strategy is to bid zero and to Inline - Protective - Pants rely on luck.It showed that bidders become less aggressive when the lottery satisfies a variational condition.It was also shown that luck factor is decisive to determine if the expected payoff in Chinese auction is bigger or smaller than expected payoff in standard all-pay auction.