Hu, Audrey; Offerman, Theo; Zou, Liang - In: Journal of Economic Theory 146 (2011) 6, pp. 2420-2439
In a premium auction, the seller offers some “payback”, called premium, to a set of high bidders at the end of the auction. This paper investigates how the performance of such premium tactics is related to the biddersʼ risk preferences. We analyze a two-stage English premium auction model...