Question: Explain clearly, don't copy from internet Consider a rst priee sealed bid auction with two bidders and their private values [111, 1:2) are drawn uniformly

Explain clearly, don't copy from internet

Consider a rst priee sealed bid auction with two bidders and their private values [111, 1:2) are drawn uniformly from [I], 1]. Suppose bidder 1 bids with the strategyr h : 331-. What is bidder 2's optimal bidding strategy? 1What is your bidder 1's optimal response again to that bidder 2's optimal bidding strategy? How does your answer to this question demonstrate that there is no equilibrium in which one of the bidders uses the strategyr b = 331

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