25.2 Optimal Bidding in a Second Price Sealed Bid Auction: Don't Overhid This problem helps to Show how a bidder should bid in second price sealed bid auction with private values. Assume that the bidder values the item being sold at $7. Therefore, the bidder's net prot if he wins is $7 P, where P is the price, the highest of all of the other hide in the auction. If the bidder loses, the bidder's prot is 0. Compare the bidder's prot from biddhig exactlyr his valuation to the bidder's proft from bidding more than his valuation. You can do so by filling in his prot in each case given in the table below. If the highest If he bids 7 If he bids 9 rival bid is... 4 7 8 10 Is one of these options {bidding 9 vs. bidding 7) always going to bring a higher payo? Is one of these options never worse than the other