Precautionary Bidding in Auctions
分析风险厌恶买家在拍卖中面对价值风险时的投标行为，发现当风险增加时，DARA买家会降低投标价，且预防性投标效应使他们在共同价值拍卖中比在私人价值拍卖中更有利。
We analyze bidding behavior in auctions when risk-averse buyers bid for a good whose value is risky. We show that when the risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk premium. Ceteris paribus, buyers will be better off bidding for a more risky object in first price, second price, and English auctions with affiliated common (interdependent) values. This "precautionary bidding" effect arises because the expected marginal utility of income increases with risk, so buyers are reluctant to bid so highly. We also show that precautionary bidding behavior can make DARA bidders prefer bidding in a common values setting to bidding in a private values one when risk-neutral or CARA bidders would be indifferent. Thus the potential for a "winner's curse" can be a blessing for rational DARA bidders.