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5 Question 15 10 pts Consider the following simple model of a common values auction. Two buyers each obtain a private signal about the value
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Question 15 10 pts Consider the following simple model of a common values auction. Two buyers each obtain a private signal about the value of an object. The signal can be either high (H) or low (L) with equal probability. If both obtain signal H, the object is worth 1; otherwise, it is worth 0. Suppose the buyer sees a signal of L, the expected value of the object to the buyer is . Suppose the buyer sees a signal of H, the expected value of the object to the buyer is (NOTE: Write your answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. Add a leading zero andtrailing zeros when needed. Use a period for the decimal separator and a comma to separate groups of thousands}Step by Step Solution
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