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Matthew is considering selling a painting in an English auction. There are n bidders whose valuations are distributed independently and uniformly on [ , ].

Matthew is considering selling a painting in an English auction. There are n bidders whose valuations are distributed independently and uniformly on [ , ].

a) What is his expected payoff from the auction?

b) A private buyer is willing to pay ( + )/2. What is the minimum number of bidders required for Matthew to choose the auction rather than sell to the private buyer? (Assume Matthew is risk neutral.)

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