Hu, Audrey; Matthews, Steven A.; Zou, Liang - Department of Economics, University of Pennsylvania - 2009
risk aversion, and more so in the first-price auction. Thus, greater seller risk aversion increases the ex post efficiency … of both auctions, and especially that of the first-price auction. The seller’s optimal reserve price in the first …-price, but not in the second-price, auction decreases in the buyers’ risk aversion. Thus, greater buyer risk aversion also …