Abstract :
In a charity auction the public-goods nature of auction revenue affects bidding
incentives. We compare equilibrium bidding and revenue in first-price, secondprice,
and all-pay charity auctions. Bidding revenue typically varies by selling format.
First-price auctions are less lucrative than second-price and all-pay auctions,
and with sufficiently many bidders the all-pay auction has the highest bidding
revenue. However, revenue equivalence applies when the auctioneer can set a
reserve price and fees plus threaten to cancel the auction. If the auctioneer cannot
threaten cancellation, a reserve and bidding fee can augment revenue but again
revenue varies by auction format
