Showing 1 - 10 of 1,321
firms' risk attitudes and the fact that future market prof-its are uncertain so that winning an auction is like winning a …
Persistent link: https://www.econbiz.de/10011343288
We analyze sequential Dutch and Vickrey auctions where risk averse, or risk preferring, bidders may have heterogeneous risk exposures. We derive and characterize a pure strategy equilibrium of both auctions for arbitrary number of identical objects. A sufficient, and to certain extent necessary,...
Persistent link: https://www.econbiz.de/10010421803
overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and …. Indeed, we find that spite is a more convincing explanation for bidding behavior for the second-price all-pay auction. Not …
Persistent link: https://www.econbiz.de/10012002983
auction - in a setting that extends Maskin and Riley (1984, Econometrica 52: 1473-1518) in three aspects: (i) the seller can … be risk averse, (ii) the bidders can have heterogeneous risk preferences, and (iii) the auction can have a binding … verifiable by deduction prior to the auction - the premium also benefits the seller and therefore leads to a Pareto improvement …
Persistent link: https://www.econbiz.de/10010234599
auction sites including eBay and General Motors Assistance Corporation. A buyer in a buy price auction can accept the buy … price to win with certainty and end the auction early. Intuitively, the buy price option may appeal to bidders who are risk … aversion and time preferences. We develop a private value model of bidder behavior in a buy price auction with a temporary buy …
Persistent link: https://www.econbiz.de/10011801642
Perfectly discriminating contests (or all pay auction) are widely used as a model of situations where individuals …
Persistent link: https://www.econbiz.de/10010343949
prefers auction X to auction Y if their transfer functions satisfy a weak form of the single-crossing condition. Intuitively … bidders are ambiguity neutral, (i) the first-price auction outperforms the second-price and all-pay auctions, and (ii) the …
Persistent link: https://www.econbiz.de/10014236978
pay. We analyze bidding behavior in a first-price auction in which the knowledge of the bidders about the distribution of … the first-price auction exists. …
Persistent link: https://www.econbiz.de/10011946017
Received auction theory prescribes that a reserve price which maximizes expected profit should be no less than the … auction that has no reserve price, an absolute auction …
Persistent link: https://www.econbiz.de/10012960626
We analyze security-bid auctions in which two risk-neutral sellers compete for risk-averse bidders. Sellers face a tradeoff in steepness because steeper securities extract more surplus but feature lower participation ex-ante. Nonetheless, steeper securities also provide higher insurance, making...
Persistent link: https://www.econbiz.de/10013289775