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1) All-Pay Auctions

Reconsider Exercise 8.E.2 of Mas-Collel/Whinston/Green with the following two modifications: 1) Valuations are distributed identically and independently on [0,1]

with the cumulative distribution function F(v) =v2. 2) All bidders must pay the bid they submitted (but only the bidder who made the highest bid wins the object).

[Hint: The hint from 8.E.2a) does not apply here.]

2) Equilibrium Refinements

Consider the following two-player extensive form game:

a) Find all Nash Equilibria of this game.

b) Find all Subgame-Perfect Nash equilibria of this game.

c) Find all Sequential Equilibria of this game.

3) Osborne/Rubinstein 253.1

1

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