The name is absent



where the last expression is greater than zero because δ1.

However, from equation (9), ъд(к2)+vb(к2) < max(δk~2Zj^ k+2Zb).
Since к
J0 + 1 implies к 2 J0 1, and by definition of J0, δ7° Za <
δ
m~2°Zb, we know δj°-1ZA < δm-j°-γZB, and hence δk 2Z.1 lZ.1 <
δ
m-^°-1ZB δm~kZb. Hence, since both δk 2Z.1 and δ^ k '2Zb are strictly
less than
δm~kZb, we have a contradiction to vA(k2)+vb(к 2) δ"' kZB >
0. Hence, vA^ 1) = 0. It immediately follows that vB(к) = δm kZb.

We have hence showed by induction that for every к J0, vA(^ = 0 and
for every к
J0 + 1,vB (к) = δm~kZb. An immediate consequence is that

vb (Jo ) = δvB (J0 1) + δ max(0,VB (J0 + 1)+ va(J0 + 1) va(J0 1) Vb (J0 1))

Since va(J0) = 0 implies J(J0 1) J(J0 + 1) < 0, the maximand in the
expression is nonnegative and

(7) vB (J0)  =  δ[vB (J0 + 1) + vA(J0 + 1) vA(J0 1)]
=
δ[δm°+1)ZB va(J01)]

Since from (25) va(J01) = δγW" 2ZavB(J0)], we have a system of
two linearly independent equations in two unknowns. These have a unique
solution which is

vA(J0 1)

vB (J0)


F 1 Zaδm^2°+1ZB

1 δ2

δm-δ° zbF Za

1 δ2


6 References

Amann, E. and W. Leininger, 1995, Expected revenue of all-pay and first-
price sealed bid auctions with affiliated signals, Journal of Ecnomics - Zeits-
chrift für Nationalokonomie 61 (3), 273-279

Amann, E. and W. Leininger, 1996, Asymmetric all-pay auctions with
incomplete information: The two-player case, Games and Ecnomic Behavior,
14 (1), 1-18.

Arbatskaya, M., 2003, The exclusion principle for symmetric multi-prize
all-pay auctions with endogenous valuations, Economics Letters, 80 (1), 73-
80.

27



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