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Consider a third-price auction with N = 3 bidders. This is a sealed-bid auction in which the highest bidder wins and pays the third-highest bid.
Consider a third-price auction with N = 3 bidders. This is a sealed-bid auction in which the highest bidder wins and pays the third-highest bid. There is no reserve price. For concreteness, you may assume that biidders' values are independently and uniformly distributed on [0, 100] (i.e., # ~"! U0, 100] for all bidders i = 1,..., N). True or False: All bidders have a (weakly) dominant strategy to bid their own values (i.e., the third price auction is strategy-proof). Provide a rigorous argument for your answer. {(Hint: This question can be answered with very little calculation.)
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