Cox, James C; Smith, Vernon L; Walker, James M - In: Journal of Risk and Uncertainty 1 (1988) 1, pp. 61-99
First-price auction theory is extended to the case of heterogeneous bidders characterized by M-parameter log-concave utility functions. This model, and its specific two-parameter constant relative risk averse special case, is generally supported by the results of 47 experiments. The...