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Consider an antique auction where bidders have independent private values. There are two bidders, each of whom perceives that valuations are uniformly distributed between $100
Consider an antique auction where bidders have independent private values. There are two bidders, each of whom perceives that valuations are uniformly distributed between $100 and $1,000. One of the bidders is Sue, who knows her own valuation is $200. What is Sue's optimal bidding strategy in a second-price, sealed-bid auction?
A | Submit a bid of $150. |
B | Submit a bid of $200. |
C | Submit a bid that is less than $150. |
D | Yell "mine" when the bid reaches $150. |
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