You are one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives thatbidders' valuations for the item are evenly distributed between $20,000 and $50,000. For each of the following auction tdetermine your optimal bidding strategy if you value the item at $35,000.a. First-price, sealed-bid auction.O Bid $20,00.O Bid $50,00.O Bid $35,00.O Bid $32,000b. Dutch auctionO Let the auctioneer continue to lower the price until it reaches $20,000, and then yell "Minel".O Let the auctioneer continue to lower the price until it reaches $35.000, and then yell "Mine!"O Let the auctioneer continue to lower the price until it reaches $32,000, and then yell "Mine!"O Let the auctioneer continue to lower the price until it reaches $50,000, and then yell "Mine!".C.ond-price, sealed-bid auctionO Bid $50,00.O Bid $35.000O Bid $32,00.b. Dutch auction.O Let the auctioneer continue to lower the price until it reaches $20,000, and then yell "Mine"O Let the auctioneer continue to lower the price until it reaches $35,000, and then yell Minel".O Let the auctioneer continue to lower the price until it reaches $32,000, and then yell MinelO Let the auctioneer continue to lower the price until it reaches $50,000, and then yell Minel"c. Second-price, sealed-bid auction.O Bid $50,00.O Bid $35,00.O Bid $32,00.O Bid $20,000.d. English auction.O Remain active until the price exceeds $50,000, and then drop out.O Remain active until the price exceeds $20,000, and then drop outO Remain active until the price exceeds $35,000, and then drop out.O Remain active until the price exceeds $32.000, and then drop out

(a) The optimal bid for the bidder in the first price, sealed-bid auction, and each bidder think…

You are one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives bidders' valuations for the item are evenly distributed between $20,000 and $50,000. For each of the following auct determine your optimal bidding strategy if you value the item at $35,000. a. First -price, sealed-bid auction. O Bid $20,000. O Bid $50,000. O Bid $35,000. O Bid $32,000.

You are one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives bidders' valuations for the item are evenly distributed between $20,000 and $50,000. For each of the following auct determine your optimal bidding strategy if you value the item at $35,000. a. First -price, sealed-bid auction. O Bid $20,000. O Bid $50,000. O Bid $35,000. O Bid $32,000.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.10P

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