This study examines risk premia in a laboratory market featuring a long-lived asset. The research is enabled by …, statistically significant risk premia are reported, in support of standard asset pricing models. Potential determinants of the risk … premia are investigated. These risk premia are not sensitive to expected variance, but do vary positively with the magnitude …

Auctions often involve goods exhibiting a common knowledge ex-post risk that is independent of buyers’ private values … or their signals regarding common value components. Esö and White (2004) showed theoretically that ex-post risk leads to … precautionary bidding for DARA bidders: Agents reduce their bids by more than their appropriate risk premium. Testing precautionary …

Auctions often involve goods exhibiting a common knowledge ex-post risk that is independent of buyers' private values … or their signals regarding common value components. Esö and White (2004) showed theoretically that ex-post risk leads to … precautionary bidding for DARA bidders: Agents reduce their bids by more than their appropriate risk premium. Testing precautionary …

Bidders.risk attitudes have important implications for sellers seeking to maximize expected revenues. In ascending …' risk preference. We propose a new approach for inference of bidders.risk attitudes when they make endogenous participation … decisions. Our approach is based on the idea that bidders' risk premium - the difference between ex ante expected profits from …

Bidders' risk attitudes have key implications for choices of revenue-maximizing auction formats. In ascending auctions …, bid distributions do not provide information about risk preference. We infer risk attitudes using distributions of …, we exploit the fact that the risk premium required for entry - the difference between ex ante expected profits from entry …

, and predictability of stock returns. The key to our results is that the agent's risk-aversion changes over time as a …