x)=2x IT X Is betwe 0 T; T(X)=C wn valuation, while the seller does r e seller sets a price, and then each b f more than a single buyer wants to chosen). Find a price that maximizes

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
ChapterA: Appendix
SectionA.2: Geometric Constructions
Problem 10P: A soda can has a volume of 25 cubic inches. Let x denote its radius and h its height, both in...
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There is a single object for sale and 2 buyers whose valuations are iid, with pdf
given by: f(x)=2x if x is between 0 and 1; f(x)=0 otherwise. Each buyer knows
his or her own valuation, while the seller does not know the valuations of the
buyers. The seller sets a price, and then each buyer decides to buy or not for
this price (if more than a single buyer wants to buy then one of them is
randomly chosen). Find a price that maximizes the expected revenue of the
seller.
Transcribed Image Text:There is a single object for sale and 2 buyers whose valuations are iid, with pdf given by: f(x)=2x if x is between 0 and 1; f(x)=0 otherwise. Each buyer knows his or her own valuation, while the seller does not know the valuations of the buyers. The seller sets a price, and then each buyer decides to buy or not for this price (if more than a single buyer wants to buy then one of them is randomly chosen). Find a price that maximizes the expected revenue of the seller.
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