overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and …In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for … spite can be used to rationalize deviations from risk neutral equilibrium bids in auctions. We exploit that equilibrium …

We study the correlation of choice under risk in Holt-Laury lotteries for gains and losses with gender, the use of … the digit ratio (2D:4D) in more than 200 subjects. In males, salivary testosterone is negatively correlated with risk … aversion for gains only. In females, salivary cortisol is positively correlated with risk aversion for gains only. No other …

Overbidding in auctions has been attributed to e.g. risk aversion, loser regret, level-k, and cursedness, relying on …

We analyse the optimal auction of multiple non-identical objects when buyers are risk averse. We show that the auction … formats that yield the maximum revenue in the risk neutral case are no longer optimal. In particular, selling the goods … risk aversion of the buyers. The optimal auction which remains weakly efficient has the following properties: The seller …

In the context of first-price auctions with asymmetrically informed bidders, we show that risk aversion not only …

be risk averse, (ii) the bidders can have heterogeneous risk preferences, and (iii) the auction can have a binding … reserve price. Our analysis reveals that the premium has an intricate joint effect on risk sharing and expected revenue, which … in general benefits risk averse bidders. When the seller is more risk averse than the pivotal bidder - a condition often …

common knowledge, except that bidders have private degrees of aversion to downside-risk. In this model, the optimal FPA … risk or risk aversion generally leads to lower equilibrium bids. …

winner's payment to the seller. De Marzo et al. (2005) show that in an environment with risk-neutral seller and bidders …, steeper securities increase the seller's expected revenue but do not affect the efficiency of the auction. We introduce risk … insurance levels the field for more risk-averse bidders, inducing them to bid more aggressively and improving the revenue and …