2. (4 points) We want to solve the second-price auction (with independent private values) discussed in class and in particular, show that truth-telling is a weakly dominant strategy. (a) First, consider a case of complete information. That is, for each bidder fix a valuation vi at a particular number and these valuations are known by everyone. i. What is a strategy here for a bidder? ii. Consider bidder i and show that for any bid of the opponent bi, bidding b =v; is weakly better than a bid bi > vi. (Hint: you have to consider three cases, depending on what value bi takes: (1) vi b_i, (2) vi