Question
You hold an auction among three bidders. You estimate that each bidder has a value of either $16 or $20 for the item, and you
You hold an auction among three bidders. You estimate that each bidder has a value of either $16 or $20 for the item, and you attach probabilities to each value of 50%. What is the expected price? If two of the three bidders collude, what is the price?
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Economics Today
Authors: Roger LeRoy Miller
16th edition
132554615, 978-0132554619
