Econometrica: Nov 1984, Volume 52, Issue 6

Optimal Auctions with Risk Averse Buyers<1473:OAWRAB>2.0.CO;2-0
p. 1473-1518

Eric Maskin, John Riley

We characterize a seller's optimal scheme for the sale of an indivisible good to one of n risk averse buyers. We also compare certain commonly used schemes, such as the high bid and second bid auctions, under the hypothesis of risk aversion.

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