Less fighting than expected
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While all-pay auctions are well researched experimentally, we do not have much laboratory evidence on wars of attrition. This paper tries to fill this gap. Technically, there are only a few differences between wars of attrition and all-pay auctions. Behaviorally, however, we find striking differences: As many studies, our experiment finds overbidding in all-pay auctions. In contrast, in wars of attrition we observe systematic underbidding.
We study bids and expenditures in different experimental frames and matching procedures and tie in with the literature on stepwise linear bidding functions.
KeywordsWar of attrition Dynamic bidding All-pay auction Stabilization Volunteer’s dilemma Experiment
JEL ClassificationC72 C92 D44 E62 H30
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