Risk aversion in first price auctions with common values [An article from: Economics Letters]

This digital document is a journal article from Economics Letters, published by Elsevier in 2004. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
In a first price auction with private values, bidders' risk aversion increases the seller's revenue. This is not generally true when there are common values, because winning the auction entails receiving an object with uncertain value.