Problem 11.2 Consider the optimal auction problem of section 11.4 above and derive the optimal auction rules
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Problem 11.2 Consider the optimal auction problem of section 11.4 above and derive the optimal auction rules for a general value of p. Show that the value of p equals 0.5 used in section 11.4 was special and that no other feasible value leads to multiple optimal values for the auction parameters. Compare and contrast the optimal auction rules for values of p greater than 0.5 with those for values of p less than 0.5.
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