1. Auctions. Consider the following common value auction. There are two bidders, 1 and 2, whose types 3,; for both i. E {1, 2}, are independently drawn from a uniform distribution on [0, EGG]. The value of the object to both bidders is the sum of the types, i.e. ll +32. The object is offered for sale in a rst price auction. Hence the payoffs depend on the bids b, and types as follows [assume a coin toss if b,- : bi}: H,+'l.,- b, ifb, > b-, [I91 'l' 93' bi} if hi I bi, *1] otherwise. \"Er {biabjsir 9;) = l 2