Kocher, Martin G.; Pahlke, Julius; Trautmann, Stefan T. - School of Economics, University of East Anglia - 2010
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. Eso and White (2004) showed theoretically that ex-post risk leads to precautionary bidding for DARA bidders: Agents reduce...