Betty White's house in Carmel, CA is being auctioned off in a second-price sealed bid auction....

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Betty White's house in Carmel, CA is being auctioned off in a second-price sealed bid auction. There are 5 mega-fans taking part in the auction. They each have a private value listed below. Participants Bidder #1 Bidder #2 Bidder #3 Bidder #4 Bidder #5 O #2. $11 million. O #2, $12 million #3, $11 million #3, $12 million #5, $10 million Private Values Ⓒ#5, $11 million $5 Million $11 Million All bidders, except Bidder #2, have taken Economics for Decision Making and understand auction theory. As such, these bidders will submit bids using their optimal strategies, while Bidder #2 submits a bid of $13 million. Which bidder will win the auction and what will be the amount paid? $12 Million $8 Million $10 Million 4 Betty White's house in Carmel, CA is being auctioned off in a second-price sealed bid auction. There are 5 mega-fans taking part in the auction. They each have a private value listed below. Participants Bidder #1 Bidder #2 Bidder #3 Bidder #4 Bidder #5 O #2. $11 million. O #2, $12 million #3, $11 million #3, $12 million #5, $10 million Private Values Ⓒ#5, $11 million $5 Million $11 Million All bidders, except Bidder #2, have taken Economics for Decision Making and understand auction theory. As such, these bidders will submit bids using their optimal strategies, while Bidder #2 submits a bid of $13 million. Which bidder will win the auction and what will be the amount paid? $12 Million $8 Million $10 Million 4

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The detailed answer for the above question is provided below In a secondprice sealed bid auction th... View the full answer