Kirchkamp, Oliver; Reiss, J. Philipp; Sadrieh, Abdolkarim - 2006
prediction. This implies that risk affects bidding behavior as generally expected in auction theory. While resolving a long …We introduce a new method of varying the risk that bidders face in first-price private value auctions. We find that … decreasing bidders' risk significantly reduces the degree of overbidding relative to the risk-neutral Bayesian-Nash equilibrium …