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Respond to the question: all pay auction with probability of win?

08/20/2006 02:14 AM by name withheld; all pay auction, with probability of winning less than 1

how would you compute an equilibrium for an all-pay auction with two bidders, where if x1 and x2 are the two bids, the probability of winning is xi/(x1+x2)? it looks like there is no pure strategy equilibrium, but then i'm not sure how to formulate the indifference condition

thanks very much [Manage messages]