Question: Why does the probability in this maximization problem become theta hat? Suppose we try to implement this social choice function. Assume that the buyers are

Why does the probability in this maximization problem become theta hat?

Suppose we try to implement this social choice function. Assume that the buyers are expected utility maximizers. We now ask: If buyer 2 always announces his true value, will buyer 1 find it optimal to do the same? For each value of 0, buyer I's problem is to choose the valuation to announce, say , so as to solve or Max (0 0,) Prob (0, < ,) Max (0 )n, _ 81

Step by Step Solution

★★★★★

3.38 Rating (142 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The problem can be formulated as follows For each v... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

QUESTION 1 For the vibration system shown in the Figure 1. a) Derive the equation of motion describing the translational motion of three masses b) Determine the natural frequencies and mode shape of...

CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...

The new line character is utilized solely as the last person in each message. On association with the server, a client can possibly (I) question the situation with a client by sending the client's...

Keep the Highest / 1 1. Recognizing the existence of asymmetric information Complete the following table by determining which economic problem is characterized in each of the scenarios provided....

Hi! Help me please Problem 2. Intertemporal choice Mainy Landin has an income of 200.000 kr this year and she expects an income of 110.000 kr next year. She can borrow and lend money at an interest...

$ assignment. this question is complete 1. Suppose an individual's "health preferences" are represented by the utility function u(5,e, h} = s[2 a] + h, whore s is sugar, e is exercise, and h is its...

give all Problem 1. Demand Bengt's utility function is U(x1, x2)= x1 + ln x2 x1 - stamps x2 - beer Bengts budget p1 x1 + p2 x2 = m p1 - price of stamps p2 - price of beer m - Bengt's budget a) What...

answer plss 1. Suppose an individual's "health preferences" are represented by the utility function u(5,e, h} = s[2 a] + h, whore s is sugar, e is exercise, and h is its general state of health. In...

Please read chapter 4 the answer the question 10: It may seem puzzling that a negative externality may induce a strategic complementarity. But ments over the Nash equilibrium. It is not surprising...

In the Intro to Purchasing and Supply Chain reading, Page 6, Figure 1-2, there is a comparison of Traditional Purchasing versus the Current Outlook. Provide three reasons why the Current Outlook is...

4)Which intermolecular force is incorrectly assigned as the principal force in the compound given? a)CCl4 London b)NH3 London c)HF H bonding d)HBr Dipole dipole

At the end of 2009, Dolf Company prepared the following schedule of its deferred tax items (based on the currently enacted tax rate of 30%): On April 30, 2010 Congress changed the income tax rate to...

Evaluate the limit . lim x 1 l n ( x ) s i n ( 2 x ) Need Help 7

You want to buy a house that will need to be financed. Look at different options and decide which will be the best choice for your situation. Determine financing options, and understand contracts...

Let A = cos sin 0 a) Let TR: R2 - sin 6 cos the spectrum Remember: no determinants can be used in this course. R2 be matrix multiplication by A, an R-linear map of the R-vector space R2. What is of T?

b) Find the temperature u(x,t) from the heat equation in a laterally insulated copper bar 80 cm long with c2-1.158 cm2/sec. If the initial temperature is represented by the below graph and the ends...

5. The lessor's lease evaluation There are two parties in any lease contract-the lessee and the lessor. To a lessor, a lease analysis involves a capital budgeting analysis of the property or...

There are very few if any indemnity plans (most are managed care) what are some of the different types of managed care policies and how do they work?

What are the non - technical skills, or soft skills, that you think are the most important for IT project managers?

During the Clinton Administration, the EITC or Earned Income Tax Credit, was expanded considerably. The program provides a wage subsidy to low income families through the tax code in a way similar to...

Suppose the domestic demand and supply for corn intersects at p and suppose further that p also happens to be the world price for corn. (Since the domestic price is equal to the world price, there...

A: We can then model exam grades as emerging from a production process that takes hours of studying and hours of sleep as inputs. Suppose this production process is homothetic and has decreasing...

A capital investment requiring one initial cash outflow is forecast to have the operating profits listed below. The investment has an NPV of $20,850, based on a required rate of return of 12%....

The introduction of a new product would require an initial investment of $120,000. The forecast profits in successive years of the anticipated four-year product life are $25,000, $60,000, $50,000,...

A $100,000 capital investment will produce annual profits of $20,000 for the first five years and $15,000 for the next five years. It will have no residual value. What is its IRR? Should it be...