auction

Project Description:

you hold an auction on ebay and expect two bidders to show up. you estimate that each bidder has a value of either $5 or $8 for the item, and you attach probabilities to each value of 50%. your own value for the item is zero. you can set a reserve price, a price below which you will not accept bids for the item. what reserve price should you set, and what are your expected profits (surplus) from auctioning the item with a reserve price?

you now expect three bidders to show up. what reserve price should you set, and what is your expected revenue from auctioning the item with a reserve price?
Skills Required:
Project Stats:

Price Type: Negotiable

Expired
Total Proposals: 1
1 Current viewersl
13 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.4
    60 Jobs 42 Reviews
    $0 in 0 Day