2) Assume there are two bidders who are competing at a private-value auction, decided by a sealed bid, first price mechanism. Let v, and b, denote your valuation and bid and let v and b, denote the valuation and bid of the other bidder. If you outbid your opponent (b, > b;), your payoff is (vi - b/), otherwise zero. While your opponent's valuation is private information and unknown, you know that it is uniformly distributed between 0 and 1, thus F(v) = P(v