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Consider the following information for the next two problems. Four bidders bid for a certain piece of antique. The bidders know their own valuations for

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Consider the following information for the next two problems. Four bidders bid for a certain piece of antique. The bidders know their own valuations for the object but do not know the value of the other three bidders. Each bidder estimates the value of the other bidders to be anywhere between $4,000 and $8,000, equally likely. Suppose that the actual valuations are: V1 = $5,600 V2 = $5,400 V3 = $5,000 V4 = $4,800 Problem #21: The expected revenue of the seller in a First Price Sealed Bid Auction is: a. 5,400 b. 5,600 c. 5,200 d. 5,500 Problem #22: The expected revenue of the seller in a Second Price Sealed Bid Auction is: a. 5,400 b. 5,600 c. 5,200 d. 5,500

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