Accession Number:

AD0689271

Title:

RISK AVERSION AND BIDDING THEORY,

Descriptive Note:

Corporate Author:

MISSOURI UNIV-COLUMBIA DEPT OF STATISTICS

Personal Author(s):

Report Date:

1968-01-01

Pagination or Media Count:

25.0

Abstract:

The paper provides a theory of individual bidding behavior in competitive sealed tender markets. A bidding model is formulated in terms of modern utility theory and its basic properties investigated. It is assumed that utility is a concave function of wealth and that the bidder is an expected utility maximizer. It is found that some important forms of individual bidding behavior depend on two functions derived from the utility function which give information about the individuals aversion to risk.

Subject Categories:

  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE