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English premium auction (EPA) for different risk attitudes of bidders. We explicitly derive the symmetric equilibrium for …
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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...
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auctions, auction theory predicts bid distributions in Bayesian Nash equilibrium does not convey any information about bidders … entry and the certainty equivalent - required for entry into the auction is strictly positive if and only if bidders are … risk attitudes in more general auction models, where in the entry stage bidders receive signals that are correlated with …
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Bidders' risk attitudes have key implications for choices of revenue-maximizing auction formats. In ascending auctions … entry costs but contains exogenous variations of potential competition and auction characteristics. In the first scenario … equilibrium entry probabilities vary with observed auction characteristics and potential competition. We also show identification …
Persistent link: https://www.econbiz.de/10013074593
Bidders' risk attitudes have key implications for choices of revenue-maximizing auction formats. In ascending auctions … entry costs but contains exogenous variations of potential competition and auction characteristics. In the first scenario … equilibrium entry probabilities vary with observed auction characteristics and potential competition. We also show identification …
Persistent link: https://www.econbiz.de/10013076172