Next Article in Journal
Strategic Voting in Heterogeneous Electorates: An Experimental Study
Previous Article in Journal
Of Coordinators and Dictators: A Public Goods Experiment
Open AccessArticle

Bimodal Bidding in Experimental All-Pay Auctions

Alumna of the London School of Economics, London WC2A 2AE, UK
Walras Pareto Center, University of Lausanne, Lausanne-Dorigny CH-1015, Switzerland
Author to whom correspondence should be addressed.
Games 2013, 4(4), 608-623;
Received: 17 July 2013 / Revised: 19 September 2013 / Accepted: 19 September 2013 / Published: 11 October 2013
PDF [257 KB, uploaded 11 October 2013]


We report results from experimental first-price, sealed-bid, all-pay auctions for a good with a common and known value. We observe bidding strategies in groups of two and three bidders and under two extreme information conditions. As predicted by the Nash equilibrium, subjects use mixed strategies. In contrast to the prediction under standard assumptions, bids are drawn from a bimodal distribution: very high and very low bids are much more frequent than intermediate bids. Standard risk preferences cannot account for our results. Bidding behavior is, however, consistent with the predictions of a model with reference dependent preferences as proposed by the prospect theory. View Full-Text
Keywords: all-pay auction; prospect theory; experiment all-pay auction; prospect theory; experiment

Figure 1

This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

Share & Cite This Article

MDPI and ACS Style

Ernst, C.; Thöni, C. Bimodal Bidding in Experimental All-Pay Auctions. Games 2013, 4, 608-623.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Games EISSN 2073-4336 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top