overbidding that often results in signi ficant losses. It is one of the most robust fi ndings in laboratory experiments. We … addresses overbidding better than the minimal payment rule and, remarkably for a static, sealed-bid design, matches the …

increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power. In the Bertrand …

Auctions often involve goods exhibiting a common knowledge ex-post risk. Precautionary bidding predicts that under … expected utility, ex-post risk leads DARA bidders to reduce their bids by more than the appropriate risk premium. Because the … degree of riskiness of the good, and bidders risk aversion, are difficult to observe in field settings, we conduct …