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Find the Bayesian Nash equilibrium of the first and second price auction and provide a formula for the case where each bidder's value is distributed
Find the Bayesian Nash equilibrium of the first and second price auction and provide a formula for the case where each bidder's value is distributed on [0, 1] as F (v) = v^2. Give a mathematical argument to show that the equilibrium bid in the first price auction is smaller than it is in the second price auction. Write down a mathematical formula for the sellers expected revenue in each case and show that they are the same.
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