Inference of bidders’ risk attitudes in ascending auctions with endogenous entry
内生进入的升价拍卖中竞标者风险态度的推断
Bidders’ risk attitudes have key implications for the choices of revenue-maximizing auction formats. In ascending auctions, bid distributions do not provide information about risk preference. We infer risk attitudes using distributions of transaction prices and participation decisions in ascending auctions with entry costs. Nonparametric tests are proposed for two distinct scenarios: first, the expected entry cost can be consistently estimated from the data; second, the data…