Question: please answer the following question! Question 2. (12 points) Consider a rst-price sealed-bid auction with three bidders, whose valuations are independently drawn from a uniform

please answer the following question!

Question 2. (12 points) Consider a rst-price sealed-bid auction with three bidders, whose valuations are independently drawn from a uniform distribution on the interval [0,1]. (1) Suppose that player 2 is using the bidding function 132(122) = 2172, and player 3 is using the bidding function 133023) = 3123. Determine player l's optimal bidding function in response. Page 1 of 2 Econ 104, Spring 2021 (2) Disregard the assumptions made in part (1). Calculate the Bayesian Nash equilibrium of this auction game and report the equilibrium bidding functions. (Hint: The equilibrium bidding function for player i is of the form bi(vi) = amt.)

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