A note on the Exclusion Principle

According to the so-called Exclusion Principle (introduced by Baye et alii, 1993), it might be profitable for the seller to reduce the number of fully-informed potential bidders in an all-pay auction. We show that it does not apply if the seller regards the bidders’ private valuations as belonging to the class of identical and independent distributions with a monotonic hazard rate.

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Year of publication:	2006-05
Authors:	Bertoletti, Paolo
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	all-pay auctions \| Exclusion Principle \| monotonic hazard rate \| economic theory of lobbying

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	D82 - Asymmetric and Private Information ; D44 - Auctions ; D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legistures, and Voting Behavior
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005621370