auction with an additional buyer is conducted. The theoretical model predicts that with risk neutral agents all sales take … place in the auction rendering the negotiation prior to the auction obsolete. An experimental test of the model provides …

English premium auction (EPA) for different risk attitudes of bidders. We explicitly derive the symmetric equilibrium for … bidders with CARA utilities and conduct an experimental study to test the theoretical predictions. In our experiment, subjects … experiment is lower than in the symmetric equilibrium. …

In an auction with a buy price, the seller provides bidders with an option to end the auction early by accepting a … transaction at a posted price. This paper develops a model of an auction with a buy price in which bidders use the auction … to augment her auction with a buy price and demonstrates that the seller sets a higher reserve price when she can affect …

firms' risk attitudes and the fact that future market prof-its are uncertain so that winning an auction is like winning a …

auction - in a setting that extends Maskin and Riley (1984, Econometrica 52: 1473-1518) in three aspects: (i) the seller can … be risk averse, (ii) the bidders can have heterogeneous risk preferences, and (iii) the auction can have a binding … verifiable by deduction prior to the auction - the premium also benefits the seller and therefore leads to a Pareto improvement …

auction sites including eBay and General Motors Assistance Corporation. A buyer in a buy price auction can accept the buy … price to win with certainty and end the auction early. Intuitively, the buy price option may appeal to bidders who are risk … aversion and time preferences. We develop a private value model of bidder behavior in a buy price auction with a temporary buy …

In a premium auction, the seller offers some "pay back", called premium, to the highest bidders. This paper … premium auction model with symmetric interdependent values, where both the seller and the buyers may be risk averse (or …