We use the tools of mechanism design, combined with the theory of risk measures, to analyze how a cash constrained owner of an asset with known stochastic returns raises capital from a population of investors that differ in their risk aversion and budget constraints. The issuer partitions the...

We derive the revenue maximizing mechanism for a risk-neutral seller whofaces Yaari's [1987] dual risk-averse bidders. The optimal mechanism offers "full-insurance" in the sense that each agent's utility is independent of other agents'reports. The seller excludes less types than under risk...

We use the tools of mechanism design, combined with the theory of risk measures, to analyze a model where a cash constrained owner of an asset with stochastic returns raises capital from a population of investors that di¤er in their risk aversion and budget constraints. The distribution of the...