You hold an auction among three bidders. You estimate that each bidder has a value of either
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You hold an auction among three bidders. You estimate that each bidder has a value of either $16 or $20 for the item, and you attach probabilities to each value of 50%. What is the expected price? If two of the three bidders collude, what is the price?
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There are eight possible value combinations for the three bidders with each equally likely These are ...View the full answer
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Related Book For 
Managerial Economics A Problem Solving Approach
ISBN: 978-1133951483
3rd edition
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
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