You are in the market for a used car. At a used car lot, you know that
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You are in the market for a used car. At a used car lot, you know that the Blue Book value of the car you are looking at is between $15,000 and $19,000. If you believe the dealer knows as much about the car as you do, how much are you willing to pay? Why?
Assume that you care only about the expected value of the car you will buy and that the car values are symmetrically distributed.
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Related Book For
The Economics Of Money Banking And Financial Markets
ISBN: 9781292268859
12th Global Edition
Authors: Frederic S. Mishkin
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