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Auction Design with Loss Averse Bidders: The Optimality of All Pay Mechanisms

  • Eisenhuth, Roland
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    Auctioneers who have an indivisible object for sale and believe that bidders are risk neutral can find the recipe for an optimal auction in Myerson (1981); auctioneers who believe that bidders are loss averse can find it here: An optimal auction is an all pay auction with minimum bid, and any optimal mechanism is all pay.

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    File URL: https://mpra.ub.uni-muenchen.de/23357/1/MPRA_paper_23357.pdf
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    File URL: https://mpra.ub.uni-muenchen.de/34824/2/MPRA_paper_34824.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23357.

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    Date of creation: 16 Jun 2010
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    Handle: RePEc:pra:mprapa:23357
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