  Adversarial Risk Analysis (ARA) is an upcoming methodology that is considered
to have advantages over the traditional decision theoretic and game theoretic
approaches. ARA solutions for first-price sealed-bid (FPSB) auctions have been
found but only under strong assumptions which make the model somewhat
unrealistic. In this paper, we use ARA methodology to model FPSB auctions using
more realistic assumptions. We define a new utility function that considers
bidders' wealth, we assume a reserve price and find solutions not only for
risk-neutral but also for risk-averse as well as risk-seeking bidders. We model
the problem using ARA for non-strategic play and level-k thinking solution
concepts.
