Question
Consider an auction with two bidders and valuations which are distributed independently and uniformly over the interval [0, 1]. Bidder 1 knows that bidder 2
Consider an auction with two bidders and valuations which are distributed independently and uniformly over the interval [0, 1]. Bidder 1 knows that bidder 2 uses the bidding function b2(x2) = sqrt(x2).
What is the best reply of bidder 1 in an allpay auction?
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Mathematical Statistics With Applications In R
Authors: Chris P. Tsokos, K.M. Ramachandran
2nd Edition
124171133, 978-0124171138
