How bidder's number affects optimal reserve price in first-price auctions under risk aversion

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

8 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)29-31
Journal / PublicationEconomics Letters
Volume113
Issue number1
Online published12 Jun 2011
Publication statusPublished - Oct 2011
Externally publishedYes

Abstract

This paper shows that in the classic symmetric and independent private value environments, the seller's optimal reserve price is a decreasing function of the number of bidders in the first-price auctions when the seller and/or buyers are risk averse.

Research Area(s)

  • Bidder number, First-price auction, Independent private value, Reserve price, Risk aversion