Risk Aversion and Full Rent Extraction in Mechanism Design ∗ Moez BENNOURI † HEC Montréal This version: December, 2005 ∗ I am grateful for their helpful comments to participants at the meeting of the Société Canadienne des Sciences Économiques (Montréal, May 2003). I also gratefully acknowledge useful comments and suggestions from Narjess Boubakri, Dominique Demougin, Sonia Falconieri, Jacqueline Fleckinger, Patrick Gonzales, Angel Hernando, Jacques Robert and Jean-Charles Rochet. All errors are mine. † HEC Montréal, 3000 chemin de la côte-Sainte-Catherine, Service de l’enseigement de la finance, Montréal, H3T 2A7; http://www.hec.ca. Phone : +1 514 340 6552; Fax : +1 514 340 5632. e-mail : moez.bennouri@hec.ca