1. Six bidders in an oral auction place the following values on a good: ($6, $5, $4, $3, $2, $1). In an oral competitive auction, what is the winning price?
a. $3
b. $4
c. $5
d. $6

2. Suppose that the second, third, and fourth bidders from the preceding oral auction form a cartel. What is the new winning price?
a. $3
b. $4
c. $5
d. $6

3. If a bidder were interested in getting a lower price in an open auction, he or she should:
a. Bid in auctions that last for longer periods of time
b. Wait until the last possible moment to submit a bid
c. Bid on the item immediately
d. Generate more attention to the auction, drawing in more buyers

4. If a seller can make any of the following changes to her auction format but her only goal is to increase the price paid, which changes should the seller make?
a. Increase the time allowed for buyers to make a bid from one week to one month.
b. Hide the values being offered from the other buyers.
c. Prevent overexposure of information about the good being sold.
d. Limit the number of buyers allowed to place a bid on your product.

5. You’re considering holding a closed-bid auction for a new technology your company has developed. One of your assistants raises a concern that the potential for a winner’s curse may encourage bidders to shade their bid values. How might you address this concern?
a. Release more information about the technology.
b. Switch to an oral auction.
c. Use a second-price auction.
d. All of the above.