Question: 3 . ( 8 points ) Chet is selling his best hat on eBay using a first - price auction. The hat has a single
points Chet is selling his best hat on eBay using a firstprice auction. The hat has a single common true value to all the potential buyers, but the true value is unknown to everyone except himself. Potential buyers only know that the true value v is uniformly distributed between and In other words, the probability for v to be less than or equal to an arbitrary number between and denoted as a is Pv a Tanya is very fond of hats. So the value of the hat for her is the true value plus
Chet will only accept offers that are greater than or equal to the true value.
a If Tanya offers what is the probability for her offer to be accepted?
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