Question
Q1 So.. there are 3 bidders with valuations that are independently and uniformly distributed between 0 and 1. In equilibrium, what would be the probability
Q1 So.. there are 3 bidders with valuations that are independently and uniformly distributed between 0 and 1. In equilibrium, what would be the probability that bidder 1'(B1)s bid is less than 0.2 in a first-price auction?
--> Would this be just 0.2/1 = 0.2 ? ...
Q2 This time 6 bidders, What is B1's bid if its valuation is 0.8 in the symmetric equilibrium of a second-price auction?
--> So.. does the number of bidders matter?? Would this be.... 0.8 x 0.5 ..?
Q3 now, 3 bidders and what is the probability that B1's bid is less than 0.2 in a first-price auction?
--> im lost on this one... since its less 0.2 /1 ?
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