Bid Costs and Endogenous Bid Caps Gavious, Arieh; Moldovanu, Benny; Sela, Aner

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Gavious, Arieh ; Moldovanu, Benny ; Sela, Aner
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RAND Journal of Economics
Games of strategy (Mathematics) -- Models; Models; Letting of contracts -- Models
We study contests where several privately informed agents bid for a prize. All bidders bear a cost of bidding that is an increasing function of their bids, and, moreover, bids may be capped. We ...
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