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Auctions for risk averse charities


[manuscript] Auctions for Risk Averse Charities

[90 minute presentation] January 2023

[20 minute presentation] June 2022

We report on the results of a lab experiment designed to provide a comprehensive evaluation of charity auction formats. Ten distinct mechanisms are considered under conditions that allow for endogenous bidder participation and risk-averse charities. We extend the traditional focus on mean revenue to its variance, and estimate a mean-variance tradeoff across mechanisms while exploring its practical implications for charities. Last, we provide a theoretical framework against which our empirical results can be measured.