In a first - price auction to sell, the low bidder wins and receives a price
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In a first−price auction to sell, the low bidder wins and receives a price equal to low bid. In an auction to sell, zi represents the cost of providing the good or service, if sold. The utility function for a bidder i, ui, is ui(b)= bi zi if bi = min(b) and 0 otherwise. Show that the three principles of bidding in first−price auctions apply to auctions to sell when you replace overbid with underbid
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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