| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP3960 |
| DP3960 Agglomeration and Regional Growth | |
| Richard Baldwin; Philippe Martin | |
| 发表日期 | 2003-07-23 |
| 出版年 | 2003 |
| 语种 | 英语 |
| 摘要 | We analyse bidding behaviour in auctions when risk-averse buyers bid for a good whose value is risky. We show that when risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk premium. Ceteris paribus, buyers will be better off bidding for a more risky object in first-price, second-price, and English auctions with affiliated common (interdependent) values. This ?precautionary bidding? effect arises because the expected marginal utility of income increases with risk, so buyers are reluctant to bid so highly. We also show that precautionary bidding behaviour can make DARA bidders prefer to bid in a common values setting than a private values one when a risk-neutral or CARA bidder would be indifferent. Thus the potential for a ?winners curse? can be a blessing for rational DARA bidders. |
| 主题 | Industrial Organization |
| 关键词 | Risk Risk-aversion Prudence First-price auctions Second-price auctions English auctions Winner's curse |
| URL | https://cepr.org/publications/dp3960 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/532942 |
| 推荐引用方式 GB/T 7714 | Richard Baldwin,Philippe Martin. DP3960 Agglomeration and Regional Growth. 2003. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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