2) A sculpture is sold at auction, and 15 individuals participate in the bidding. a. Suppose that the sculpture is purely private value. All bidders are risk neutral. The highest bidder's private valuation is $71,500 and the second-highest bidder's private valuation is $69,300. List the winner's optimal bids in an open outcry Dutch auction and an open outcry English auction. b. Suppose now that all bidders are risk averse instead of risk neutral. In which type of sealed bid auction would the winning bidder likely earn higher profits? Why? c. Now suppose that this sculpture has a common value component. If you are the seller and you can choose between any of the four types of auctions we discussed in class, which will you select? Why? 2) A sculpture is sold at auction, and 15 individuals participate in the bidding. a. Suppose that the sculpture is purely private value. All bidders are risk neutral. The highest bidder's private valuation is $71,500 and the second-highest bidder's private valuation is $69,300. List the winner's optimal bids in an open outcry Dutch auction and an open outcry English auction. b. Suppose now that all bidders are risk averse instead of risk neutral. In which type of sealed bid auction would the winning bidder likely earn higher profits? Why? c. Now suppose that this sculpture has a common value component. If you are the seller and you can choose between any of the four types of auctions we discussed in class, which will you select? Why