Question
Three bidders show up for a Vickrey auction. Each bidder is either high value (willing to pay $100 with probability = 0.5) or low value
Three bidders show up for a Vickrey auction. Each bidder is either high value (willing to pay $100 with probability = 0.5) or low value (willing to pay $80 with probability 0.5). What is the expected price?
a. $100
b. $90
c. $87.50
d. $80
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Global Business Today
Authors: Charles Hill
9th Edition
1259299201, 9781259299209
