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Suppose you bid for an item for sale on an online auction site. You know that there are 40 bidders, including yourself. and all of
Suppose you bid for an item for sale on an online auction site. You know that there are 40 bidders, including yourself. and all of you are uniformly distributed in your valuation of the item. If you have to submit your bid to the seller in secret and you pay the price you bid, you should bid at slightly below of your own reservation price. If you win, your consumer surplus is O a. 92.5%; around 7.5% of the price you pay 0 b. 97.5%; positive 0 c. 90%; positive 0 d. 50%; around 50% of the price you pay
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