Question: Hello, Please solve this question for me. Thank you! 4. (20 points) (try this question after next week's lecture). A seller is selling one unit

Hello, Please solve this question for me. Thank you!

Hello, Please solve this question for me. Thank you! 4. (20 points)

4. (20 points) (try this question after next week's lecture). A seller is selling one unit of an indivisible commodity through rst price sealed bid auction- There are 2 bidders indexed by 1' = 1,2. Simultaneously each bidder submits a sealed bid 5,- 2 U. The highest bidder wins and pays her bid. If bidder i is the winner, and her bid is b,- then her net payo is v,- bi. If bidder 2' does not win, she gets a payoff of 0. Each bidder i knows her value, 1),- for the object ( her maximal willingness to pay) but does not know the value of the other bidder of. It is commonly known that In , 1);; are distributed identically and independently over the interval [0, 1] according to the distribution function, F(:r) = :r In the symmetric equilibrium of this game nd the equilibrium bid function for a bidder

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