1. Considerageneralprivatevalueauction:

1. What is the optimal bidding strategy in a sealed bid second price auction? Explain your answer.
2. What is the optimal bidding strategy in a sealed bid first price auction? Explain your answer.
3. If you were bidding in an auction (e.g., a potential buyer), would you prefer a sealed bid first price auction or a sealed bid second price auction? Explain your answer.