Your company is bidding for a service contract in a first price, sealed bid auction You value the contract at $12 million You believe the distribution of bids will be uniform, with a high value of $16 million and a low value of $3 million What is your optimal bidding strategy with a 5 bidders b 10 ...

As the number of bidders increases the optimal bid beco ...

Your company is bidding for a service contract in a first-price, sealed-bid auction. You value the contract

Question:

Your company is bidding for a service contract in a first-price, sealed-bid auction. You value the contract at $12 million. You believe the of bids will be uniform, with a high value of $16 million and a low value of $3 million. What is your optimal bidding strategy with
a. 5 bidders?
b. 10 bidders?
c. 20 bidders?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...