We analyze the effects of buyer and seller risk aversion in first- and second-price auctions in the classic setting of symmetric and independent private values. We show that the seller's optimal reserve price decreases in his own risk aversion, and more so in the first-price auction. The reserve...

Using lattice programming and order theoretic fixpoint theory, we develop a new class of monotone iterative methods that provide a qualitative theory of Markovian equilibrium decision processes for a large class of infinite horizon economies with capital. The class of economies includes models...

We introduce learning in a Brock-Mirman environment and study the effect of risk generated by the planner's econometric activity on optimal consumption and investment. Here, learning introduces two sources of risk about future payoffs: structural uncertainty and uncertainty due to the...