You are a buyer for a used- car dealer. You attend car auctions and bid on cars that will be sold at the dealer. The cars are sold “as is” and there is seldom an opportunity to make a thorough inspection. Under these conditions, the lower bound for the value of a car can be zero. A 1981 Dodge Aries has been offered at the auction. You are one of 20 bidders. Your estimate of the value of the car is $200. If all the bidders have unbiased estimates drawn from a uniform distribution with an unknown upper bound, what is the most you can bid for the car and not have your client expect to lose money?
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