MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
9th Edition
ISBN: 2810022149537
Author: Baye
Publisher: MCG
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Question
Chapter 12, Problem 6CACQ
(A)
To determine
The optimal bidding strategy in first price, sealed bid auction is to be ascertained.
(B)
To determine
The optimal bidding strategy in first price, sealed bid auction is to be ascertained.
(C)
To determine
The optimal bidding strategy in first price, sealed bid auction is to be ascertained.
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Students have asked these similar questions
You are a bidder in an independent private auction, and you value the object at $2000. Each bidder assumes that the valuations are uniformly distributed between $1000 and $5000. Determine your optimal bidding strategy in a first-price sealed bid auction when the total number of bidders are: 2, 10, and 100.
How to solve this question?
Consider an antique auction where bidders have independent private values. There are two bidders, each of whom perceives that valuations are uniformly distributed between $100 and $1,000. One of the bidders is Sue, who knows her own valuation is $200. What is Sue's optimal bidding strategy in a Dutch auction?
Consider a sealed-bid auction in which the seller draws one of the N bids at random. The buyer whose bid was drawn wins the auction and pays the amount bid. Assume that buyer valuations follow a uniform(0,1) distribution.
1. What is the symmetric equilibrium bidding strategy b(v)?2. What is the seller’s expected revenue?3. Why doesn’t this auction pay the seller the same revenue as the four standard auctions? That is, why doesn’t the revenue equivalence theorem apply here?
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