Reserve prices in auctions with entry when the seller is risk-averse

摘要

We show that risk aversion raises the public reserve price rp above the seller's cost c, but lowers the secret reserve price rs below the revenue maximizing reserve price ro. Further, r(p) < r(s). Hence, for a risk averse seller, public and secret reserve prices are ordered: c < r(p) < r(s) < r(0). (C) 2017 Elsevier B.V. All rights reserved.