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Q3 Playing Detective Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Posi- tion T receives x1 = 200 clicks

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Q3 Playing Detective Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Posi- tion T receives x1 = 200 clicks per day and position B receives 28 = 100 clicks per day. There are three bidders (B1 - B3) with the dollar values per click that satisfy VI > 09 > 03 > 0. All values are positive integers. In this question you will recover values vi. U'z, ug step-by-step by following the list of clues. The list of clues (proceed in the given order) 1 (a) Write down restrictions on values that are consistent with the fact that b = 20,62 = 7,63 = 4 is an equilibrium of the GSP auction. (b) Write down further restrictions on values that are consistent with the fact that b = 10,62 = 3,63 = 2 is NOT an equilibrium of the GSP auction due to Bidder 3 having a profitable deviation (strictly positive). At the same time, Bidder 1 and Bidder 2 do not have profitable deviations (c) Write down further restrictions on values that are consistent with the fact that P1 = 8 and P2 = 6 are the highest "per click" market clearing prices. (d) Write down further restrictions on values that are consistent with the fact that Vickrey irrota 1100 in revenue Q3 Playing Detective Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Posi- tion T receives x1 = 200 clicks per day and position B receives 28 = 100 clicks per day. There are three bidders (B1 - B3) with the dollar values per click that satisfy VI > 09 > 03 > 0. All values are positive integers. In this question you will recover values vi. U'z, ug step-by-step by following the list of clues. The list of clues (proceed in the given order) 1 (a) Write down restrictions on values that are consistent with the fact that b = 20,62 = 7,63 = 4 is an equilibrium of the GSP auction. (b) Write down further restrictions on values that are consistent with the fact that b = 10,62 = 3,63 = 2 is NOT an equilibrium of the GSP auction due to Bidder 3 having a profitable deviation (strictly positive). At the same time, Bidder 1 and Bidder 2 do not have profitable deviations (c) Write down further restrictions on values that are consistent with the fact that P1 = 8 and P2 = 6 are the highest "per click" market clearing prices. (d) Write down further restrictions on values that are consistent with the fact that Vickrey irrota 1100 in revenue

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