Question: Consider a first - price sealed bid auction between two bidders ( ties are broken with equal probability ) . Each bidder may have a
Consider a firstprice sealed bid auction between two bidders ties are broken with equal probability Each bidder may have a high valuation of H with a probability of or a low valuation of L on the object being auctioned with a probability of A bidder's valuation is her private information. Suppose that the bid of each player can only be or Solve for the purestrategy symmetric BNE that is regardless of identity, a bidder will use one bid when her type is L and another possibly the same bid when her type is H Now suppose that each player can bid any nonnegative real number. Show that there is no purestrategy symmetric BNE.
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