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Bidders¡¯ Risk Preferences in Discriminative Auctions

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  • Yonghong Long

    (Institute for Advanced Study, Wuhan University
    School of Information, Renmin University of China)

Abstract

We study multiple unit Discriminative auctions when the bidders share logconcave utility functions and investigate the effects of bidders risk preferences on their bid functions when all bidders share a common utility function and when the bidders exhibit different risk preferences. We extend the existing findings from single unit auctions to multiple unit Discriminative auctions, from concave utility functions to log-concave utility functions, and from identical preference to different preferences.

Suggested Citation

  • Yonghong Long, 2009. "Bidders¡¯ Risk Preferences in Discriminative Auctions," Annals of Economics and Finance, Society for AEF, vol. 10(1), pages 215-223, May.
    • Handle: RePEc:cuf:journl:y:2009:v:10:i:1:p:215-223
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Auction; Bid function; Risk preference;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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