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Consider a first-price sealed-bid auction in which the bidders' valuations are independently and uniformly distributed on [0, 1]. Prove that if there are n bidders,
Consider a first-price sealed-bid auction in which the bidders' valuations are independently and uniformly distributed on [0, 1]. Prove that if there are n bidders, then the strategy of bidding (n1)/ n times one's valuation is a symmetric Bayesian Nash equilibrium of this auction.
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