Häfner, Samuel - In: Quantitative economics : QE ; journal of the … 14 (2023) 2, pp. 419-470
This paper analyzes risk aversion in discriminatory share auctions. I generalize the k‐step share auction model of … risk aversion. I also derive necessary conditions for best-response behavior, which allows determining risk preferences … high-quality beef. Rents are overestimated when ignoring risk aversion, and rent extraction is underestimated. Small …