Question: There are two bidders, 1 and 2, whose types i for both i {1, 2}, are independently drawn from a uniform distribution on [0, 200].

There are two bidders, 1 and 2, whose types i for both i {1, 2}, are independently drawn from a uniform distribution on [0, 200]. The value of the object to both bidders is the sum of the types, i.e. 1 + 2. The object is offered for sale in a first price auction. Hence the payoffs depend on the bids bi and types as follows (assume a coin toss if bi = bj):

Oi + 0; - b; if bi >bj, u; (bi , bj , 0;, 0; (0i + 0; - b;) if bi = bj 0 otherwise
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