You are a bidder in an independent private values auction, and you value the object at $5,000.
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Question:
You are a bidder in an independent private values auction, and you value the object at $5,000. Each bidder perceives that valuations are uniformly distributed between $1,500 and $8,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
a. 2 bidders.
Bid: $
b. 10 bidders.
Bid: $
c. 100 bidders.
Bid: $
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