13.

Anna's Antiques expects to get two bidders for the unique china teaeup it sells. Each of the bidders can either have a high-value of $100 or a low-value of 570 with equal probability. IfAnna instead holds an oral auction between the two bidders and one bidder of each type shows up. she earn from the auction. 3) Just above $730 [\"3\"] -- b) Just above $100 '3 ._. Cl $100 {U} C\" 570 Consider a simultaneous more game between a union and a company. If both the parties bargain hard. each would gain nothing. If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a 55 million. 1arhile ifthey both accommodate. they each get $3 million. 1What would be the Nash equilibrium of this game? a} Bargain hard. bargain hard '3:.___.:' b) Firm bargains hard. union accommodates - C) Union bargains hard. firm accommodates d} Both B&C To avoid the winner's curse O a ) Bid less aggressively as the number of bidders decreases O b) Bid more aggressively as the number of bidders increase O C) Bid less aggressively as the number of bidders increases O d) None of the aboveQuestion 28 (1 point) Saved This factor contributes to the winner's curse a) your estimate of the value of the object was not the most optimistic O b) you did not shade your bid enough your bid was not the highest O d) there were not many other bidders you had to beat outWith which choice are you more likely to avoid Bid-rigging cartels? ( a) Holding smaller auctions O b) Holding larger auctions O C) Holding frequent auctions O d) Both B&C