Hu, Audrey; Offerman, Theo; Zou, Liang - 2010
investigates how the performance of such premium tactic is related to the participant's risk preferences. By developing an English … premium auction model with symmetric interdependent values, where both the seller and the buyers may be risk averse (or … preferring), we show that a) the premium reduces the riskiness of revenue regardless of the bidders' risk preferences, and b) the …