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Can you solve this problem? Consider a first-price auction with two players. Their private values v1[0, 1] and v2[0, 1] are independent with distribution functions
Can you solve this problem?
Consider a first-price auction with two players. Their private values v1[0, 1] and
v2[0, 1] are independent with distribution functions F [V21] = v1 and F [v2] = v2. Let us say that their bids are b1 (v1) = v1 / 2 and b2 (v2) = 2v2 / 3.
A). Is player 1's strategy a better answer to player 2's strategy?
B). Is player 2's strategy a better answer to player 1's strategy?
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