You are in the market for a used car. at a used car lot, you know the blue book value for the cars you are looking at is between $20k and $24k. If you believe the dealer knows as much about the cars as you do, how much are you willing to pay in $s? Assume that you care only about the expected value of the car you buy and that the car values are symmetrically distributed.

Now, you believe the dealer knows more about the cars than you do. How much are you willing to pay in $s?