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Risk aversion in auctions with asymmetrically informed bidders: A "desensitizer" from uncertainty

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  • Muñoz-García, Félix
  • Orozco-Alemán, Sandra

Abstract

In the context of first-price auctions with asymmetrically informed bidders, we show that risk aversion not only increases a player's bid, but also makes him less sensitive to the probability that other bidders are informed about his private valuation.

Suggested Citation

  • Muñoz-García, Félix & Orozco-Alemán, Sandra, 2011. "Risk aversion in auctions with asymmetrically informed bidders: A "desensitizer" from uncertainty," Economics Letters, Elsevier, vol. 112(1), pages 38-41, July.
    • Handle: RePEc:eee:ecolet:v:112:y:2011:i:1:p:38-41
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    References listed on IDEAS

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