In a Sealed-Bid, First-Price Auctions with Independent Private Values

Multiple Choice

In a sealed-bid, first-price auctions with independent private values:

A) Risk averse bidders should submit bids that are strictly below what each believes the object is worth.
B) Risk averse bidders should submit bids that are exactly equal to what they believe the object is worth when the number of bidders is small.
C) The bid of each risk-averse bidder will converge to his or her true value as the number of bidders increases.
D) Answers a and c are correct.
E) None of the above.