Decision Sciences
7 years ago

Risk-sensitive bidders in auctions lead to more distributed bidding behavior.

IFAC-PapersOnLine
Risk-Sensitive Lowest Unique Bid Auctions
Yida Xu, Hamidou Tembiné

Paper Summary

Multi-item auctions online can be tricky for bidders due to incomplete information and budget limits. A new study looked at how bidders handle risk in these auctions. Unlike those who play it safe with small bids, risk-aware bidders spread their bids out more.

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