How bidder's number affects optimal reserve price in first-price auctions under risk aversion
AbstractThis paper shows that in the classic symmetric and independent private value environments, the seller's optimal reserve price is a decreasing function of the number of bidders in the first-price auctions when the seller and/or buyers are risk averse.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 113 (2011)
Issue (Month): 1 (October)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolet
Bidder number Risk aversion Reserve price Independent private value First-price auction;
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09-016, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Hu, Audrey & Matthews, Steven A. & Zou, Liang, 2010. "Risk aversion and optimal reserve prices in first- and second-price auctions," Journal of Economic Theory, Elsevier, vol. 145(3), pages 1188-1202, May.
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- Levin, Dan & Smith, James L, 1996. "Optimal Reservation Prices in Auctions," Economic Journal, Royal Economic Society, vol. 106(438), pages 1271-83, September.
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