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Consider a private value auction where each bidder believes that valuations are uniformly distributed between $10 and $50. Michael knows his own valuation is $20.
Consider a private value auction where each bidder believes that valuations are uniformly distributed between $10 and $50. Michael knows his own valuation is $20. Determine Michaels optimal bid in:
a. a second-price sealed bid auction with 2 bidders.
b. a first-price sealed-bid auction with 2 bidders.
c. a Dutch auction with 2 bidders
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