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A seller is selling a single object. There are N bidders with independent private values drawn from a distribution F with continuous, strictly positive density
A seller is selling a single object. There are N bidders with independent private values drawn from a distribution F with continuous, strictly positive density f on the interval [0, V]. Assume f(x) 1F(x) is non-decreasing. Let OPT(N) be the expected revenue from the optimal auction with N bidders (see Sandholm notes). Let S(N 1) denote the expected revenue from a second-price auction with N 1 bidders. (a) Show that S(N 1) OPT(N)
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