We analyse bidding behaviour in auctions when risk-averse buyers bid for a good whose value is risky. We show that when … risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk … marginal utility of income increases with risk, so buyers are reluctant to bid so highly. We also show that precautionary …

bid exceeds the private valuation of the bank’s coalition partner (overbidding). We derive new and testable cross …-sectional predictions of the overbidding theory, and provide empirical support using auction premiums as dependent variable. Interestingly …

the liquidation recovery and the final going-concern auction premium are observable, the overbidding theory is testable …. We perform a large-sample, cross-sectional analysis where overbidding is pitched against asset fire-sale arguments. The … overbidding but provides little support for asset fire-sale arguments. …

equilibrium than others. Since deviations take mostly the form of overbidding, these subjects win the first or second good and …

and public information and systematic overbidding in all auctions above and beyond the standard winner's curse. The Cursed …