Question
A seller is considering how to auction off an item of value. He knows bidders have valuations drawn from a uniform on [0,80][0,80]. At the
A seller is considering how to auction off an item of value. He knows bidders have valuations drawn from a uniform on [0,80][0,80]. At the moment, he has 4 prospective bidders. He is approached by an Auction Success Consultant, who promises that for a fixed fee, he will be able to bring 2 more bidders to the auction (who have valuations alsodrawn from a uniform on [0,80][0,80]).
What is the maximal fee that the seller would agree to, if he is interested only in maximising his expected revenue from the auction?
Please only provide a number and no dollar signs or special characters (e.g. "4.39" rather than "$4.39")
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