Abstract. In the optimal auction when bidders are risk averse and asymmetric, the bidder with the highest value almost always wins the object if the degree of risk is large. When bidders are only slightly risk averse, the highest value bidder may win less often than under risk neutrality.
Selling to the Highest Valuation Bidder under Risk Aversion and Asymmetry / Domenico Menicucci. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 79:(2003), pp. 247-253.
Selling to the Highest Valuation Bidder under Risk Aversion and Asymmetry
MENICUCCI, DOMENICO
2003
Abstract
Abstract. In the optimal auction when bidders are risk averse and asymmetric, the bidder with the highest value almost always wins the object if the degree of risk is large. When bidders are only slightly risk averse, the highest value bidder may win less often than under risk neutrality.File in questo prodotto:
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