Question: Auctions Practice question 7. Three bidders have a private valuation drawn from a uniform distribution on [0.30] for a single item. The valuations are 10,

Auctions Practice question

Auctions Practice question 7. Three bidders have a private valuation drawn from

7. Three bidders have a private valuation drawn from a uniform distribution on [0.30] for a single item. The valuations are 10, 15 and 20 for bidders 1, 2 and 3 respectively. a) What are the bidders' equilibrium strategies in a second price auction? b] Show that for bidder 2 no deviation from his strategy in a) would be protable. c) Who wins the auction and how much do they pay? d] If instead the seller uses a rst price sealed bid auction, what are the bidders' equilibrium strategies

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