Question
Elsa is bidding along with 20 other people on a rare painting in a first-price, sealed bid auction. Elsa believes that the bidders have independent
Elsa is bidding along with 20 other people on a rare painting in a first-price, sealed bid auction. Elsa believes that the bidders have independent valuations of the painting, evenly dispersed, that range from $800,000 to $2.5 million. Elsa's value of the painting is $1.8 million.
Question: Calculate Elsa's optimal bid for the painting.
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
