The analysis of competition through the multi-unit auction with the unit demand and the symmetric private information

The Multi-unit all-pay auction can be used as an analytical tool of the contest. This paper investigates the competitive behavior during the contest through the symmetric multi-unit auction with the private information and unit demands of bidders. Allowing lags between adjacently ranked prizes, the equilibrium bidding strategy shows that the lag size has a negative effect and the valuation level has a positive effect on the equilibrium bidding strategy and the expected revenue. Additionally, the paper calls for the distribution of prizes by confirming that the increasing lag size might reduce the expected revenue more than the reduced valuations on prizes. The example results that the revenue generated from the single-unit auction might be higher than that of the multi-unit auction.