Question: Consider a first - price sealed - bid auction with three bidders: Bidder 1 , bidder 2 , bidder 3 , who bid for one

Consider a first-price sealed-bid auction with three bidders: Bidder 1, bidder 2, bidder 3, who bid for
one object. A bidders valuation can be 2 with probability 1
3.; 4 with probability 1
4, or 6 with a
probability of 5
12. Bidders valuations are private and independently distributed. The auction rules
state that the minimum acceptable bid is 0.
Let 1(1) be Bidder 1s bidding strategy as a function of own valuation 1;
Let 2(2) be Bidder 2s bidding strategy as a function of own valuation 2;
Let 3(3) be Bidder 3s bidding strategy as a function of own valuation 3;
We are looking at equilibrium strategies which have the following properties:
1- All players bidding strategies are the same: 1(2)=2(2)=3(2)=(2),
1(4)=2(4)=3(4)=(4),1(6)=2(6)=3(6)=(6)
Bids are strictly increasing in valuation: (2)<(4)<(6)
2- No bidder pays more than their valuation: (2)2; (4)4; (6)6.
3- Bids can only be positive integers.
Answer Q10-Q12 based on the setup above.
Q10.(9 points) Calculate the probability of receiving the object for a bidder with valuation 2?
valuation 4?
valuation 6?

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