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Payoff equivalence in sealed bid auctions and the dual theory of choice under risk: A correction

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  • Volij, Oscar

Abstract

This note corrects a mistake in Volij (2002) “Payoff equivalence in sealed bid auctions and the dual theory of choice under risk,” Economics Letters, 76(2), 231–237. It shows the payoff equivalence of a family of auctions when risk-averse bidders behave according to Yaari’s dual theory of choice under risk.

Suggested Citation

  • Volij, Oscar, 2025. "Payoff equivalence in sealed bid auctions and the dual theory of choice under risk: A correction," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176524006232
    DOI: 10.1016/j.econlet.2024.112139
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    References listed on IDEAS

    as
    1. Paul Milgrom & Ilya Segal, 2002. "Envelope Theorems for Arbitrary Choice Sets," Econometrica, Econometric Society, vol. 70(2), pages 583-601, March.
    2. Yaari, Menahem E, 1987. "The Dual Theory of Choice under Risk," Econometrica, Econometric Society, vol. 55(1), pages 95-115, January.
    3. Volij, Oscar, 2002. "Payoff equivalence in sealed bid auctions and the dual theory of choice under risk," Economics Letters, Elsevier, vol. 76(2), pages 231-237, July.
    4. Alex Gershkov & Benny Moldovanu & Philipp Strack & Mengxi Zhang, 2022. "Optimal Auctions: Non-expected Utility and Constant Risk Aversion," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(5), pages 2630-2662.
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    More about this item

    Keywords

    Auctions; Non-expected utility; Risk aversion;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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