Asymmetric Optimal Auction Design with Loss-Averse Bidders

Dutch vs. first-price auctions with expectations-based loss-averse bidders

“…Under this assumption, a seller facing risk-neutral bidders would always choose a non-trivial reserve price; i.e., there are no corner solutions 10. Throughout the paper, we restrict attention to symmetric (i.e., non discriminatory) auction mechanisms; for a recent analysis of asymmetric auctions with expectations-based loss-averse bidders, seeMuramoto and Sogo (2022).…”