4. (10pts) First-price auction. Consider the game studied in class. There are five bidders. Their valuations towards the object for sale are v1 = 37, v2 = 31, v3 = 29, v4 = 23, v5 = 17. Consult the handout for rules that determine the winner and payoffs. (a) (3pts) Is (b1 = 31.2,b2 = 31,b3 = 0,b4 = b5 = 27) a Nash equilibrium? Explain. (b) (3pts) Is (b1 = 35,b2 = 35,b3 = 35,b4 = 27,b5 = 0) a Nash equilibrium? Explain. (c) (4pts) For what values of b, would the profile (b1 = b2 = b3 = b4 = b5 = b) be a Nash equilibrium? Explain

4. (10pts) First-price auction. Consider the game studied in class. There are five bidders. Their valuations towards the object for sale are v1 = 37, v2 = 31, v3 = 29, v4 = 23, vs = 17. Consult the handout for rules that determine the winner and payoffs. (a) (3pts) Is (b1 = 31.2, b2 = 31,b3 = 0,b4 = b5 =27) a Nash equilibrium? Explain. (b) (3pts) Is (b1 = 35, b2 = 35, b3 = 35,b4 = 27, b5 =0) a Nash equilibrium? Explain. (c) (4pts) For what values of b, would the profile (b1 = b2 = b3 = b4 = b5 = b) be a Nash equilib rium? Explain