optimal mechanisms in the presence of risk aversion

We study the case of one seller, one buyer and one object, where both the seller and the buyer may be risk averse - unlike the standard models that assume risk neutrality.We characterize the optimal mechanism: it turns out to require the seller to offer a continuum of lotteries.

Location: 
Elath Hall, 2nd floor, Feldman Building, Edmond J. Safra Campus
Date: 
Tuesday, September 19, 2017 - 14:00
Lecturers: 
Tomer Siedner
HUJI