An all-pay mechanism is one where agents bid, a bid-allocation rule maps the bids to who...

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An all-pay mechanism is one where agents bid, a bid-allocation rule maps the bids to who wins, and all agents pay their bids. Consider a single- item environment with two i.i.d. agents with values from U[0,1]. 1. Identify the all-pay mechanisms with the highest expected revenue, i.e., specify its bid allocation rule. Give formal justification for your answer. 2. Identify the Bayes-Nash equilibrium strategies of the agents in this optimal mechanism. An all-pay mechanism is one where agents bid, a bid-allocation rule maps the bids to who wins, and all agents pay their bids. Consider a single- item environment with two i.i.d. agents with values from U[0,1]. 1. Identify the all-pay mechanisms with the highest expected revenue, i.e., specify its bid allocation rule. Give formal justification for your answer. 2. Identify the Bayes-Nash equilibrium strategies of the agents in this optimal mechanism.

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Based on the information from the economics and game theory an allpay auction is a type of auction ... View the full answer