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I am holding asealed-bid, second-priceauction for a coupon worth one month of free coffee. You spend $50 on coffee each month, so your private value
I am holding asealed-bid, second-priceauction for a coupon worth one month of free coffee. You spend $50 on coffee each month, so your private value of this coupon is exactly $50. However, you learn that the others are planning to collude in the auction and bid only 10% of their true values in an attempt to lower the cost of coffee on campus. With this information, what should your bidding strategy be? Provide a justification for your strategy.
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