Copyright © 2012 IER. On asymmetry in all-pay auctions

This paper examines the role of asymmetry in all-pay auctions. In particular, this paper decomposes a change in players ’ valuations into the absolute change and the relative change, and analyzes how these changes affect total expendi-tures. An increase in the sum of players ’ valuations increases total expenditures but an increase in asymmetry among players ’ valuations tends to decrease total expenditures both under complete and incomplete information