Hu, Audrey; Matthews, Steven A.; Zou, Liang - In: Journal of Economic Theory 145 (2010) 3, pp. 1188-1202
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...