2. Individual Problems 18-2 A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay.r the reserve price, the item is unsold at a prot of SCI for the auctioneer. If only one bidder values the item at or above the reserve pricer that bidder pays the reserve price. An auctioneer faces two bidders, each with a value of either 560 or 5160, with both values equallyr probable. Without a reserve pricer the second highest bid will be the price paid by the winning bidder. The following table lists the four possible combinations of bidder values. Each combination is equally.r likely to occur. On the foowing tabie, indicate the price paid by the winning bidder with and without the stated reserve price. Bidder 1 Value Bidder 2 Value Price Without Reserve ($) (5) Probability (S) Price with $160 Reserve Price $60 S60 0.25 V V $60 5160 0.25 V V $160 S60 0.25 V Y $160 5160 0.25 V V Without a reserve price, the expected price is|:] . With a reserve price of 5160, the expected price is: . Thus, the expected price is larger V the reserve price