Question 12 0 out of 1 points A vintage Omega Seamaster watch is up for sale. It will be sold via an auction. Assume there are four bidders, and that all care only about their own private value of owning the watch X (they do not plan to ever sell it in the future. Their valuations are: $300, $500, $800, $1200. If the auctioneer uses a sealed-bid, second-price auction: What will be the winning bid? [a] What will be the net payoff to the winner? [b] Specified Answer for: a 800 This is incorrect. Recall that in second-price, sealed-bid auctions, it is a dominant strategy for bidders to bid their value and the winning bid is the highest. Specified Answer for: b [None Given ] This is incorrect. Recall that in second-price sealed-bid auctions, bidders bid their value, the winning bid is the highest, and the price paid is the second-highest bid. The payoff is therefore equal to the winner's value minus the second-highest bid