TY - GEN
T1 - Spiteful bidding in the dollar auction
AU - Waniek, Marcin
AU - Niescieruk, Agata
AU - Michalak, Tomasz
AU - Rahwan, Talal
PY - 2015
Y1 - 2015
N2 - Shubik's (all-pay) dollar auction is a simple yet powerful auction model that aims to shed light on the motives and dynamics of conflict escalation. Common intuition and experimental results suggest that the dollar auction is a trap, inducing conflict by its very design. However, O'Neill [1986] proved the surprising fact that, contrary to the experimental results and the intuition, the dollar auction has an immediate solution in pure strategies, i.e., theoretically it should not lead to conflict escalation. In this paper, inspired by the recent literature on spiteful bidders, we ask whether the escalation in the dollar auction can be induced by meanness. Our results confirm this conjecture in various scenarios.
AB - Shubik's (all-pay) dollar auction is a simple yet powerful auction model that aims to shed light on the motives and dynamics of conflict escalation. Common intuition and experimental results suggest that the dollar auction is a trap, inducing conflict by its very design. However, O'Neill [1986] proved the surprising fact that, contrary to the experimental results and the intuition, the dollar auction has an immediate solution in pure strategies, i.e., theoretically it should not lead to conflict escalation. In this paper, inspired by the recent literature on spiteful bidders, we ask whether the escalation in the dollar auction can be induced by meanness. Our results confirm this conjecture in various scenarios.
UR - http://www.scopus.com/inward/record.url?scp=84949776155&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84949776155&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:84949776155
T3 - IJCAI International Joint Conference on Artificial Intelligence
SP - 667
EP - 673
BT - IJCAI 2015 - Proceedings of the 24th International Joint Conference on Artificial Intelligence
A2 - Wooldridge, Michael
A2 - Yang, Qiang
PB - International Joint Conferences on Artificial Intelligence
T2 - 24th International Joint Conference on Artificial Intelligence, IJCAI 2015
Y2 - 25 July 2015 through 31 July 2015
ER -