Consider a first-price auction with common values and two rational bidders with uniformly distributed signals S 1
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider a first-price auction with common values and two rational bidders with uniformly distributed signals S1 and S2. The true value of the object being auctioned is given by V = (S1 + S2)/2. If S1 = 50 and S2 = 70, then:
A) The value of the asset is $60.
B) Bidder 1 should bid $50.
C) Bidder 2 should bid $70.
D) Only b. and c.
E) All of the above.
Related Book For
Posted Date: