Question
Consider an English auction where bidders have independent private values. Each bidder perceives that valuations are evenly distributed between $1 and $10. Victor knows that
Consider an English auction where bidders have independent private values. Each bidder perceives that valuations are evenly distributed between $1 and $10. Victor knows that the value of the item could be either $4 or $8. He thinks there is only 40% chance that the item's value is $8. What should be his optimal strategy if he participates in this auction market?
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Macroeconomics Principles, Problems, & Policies
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
20th Edition
0077660773, 9780077660772
