Suppose that Anna, Bill, and Cameron are the only people interested in the paintings of the Bucks County artist Walter Emerson Baum. His painting Sellers Mill is being auctioned by a second-price sealed-bid auction. Suppose Anna’s value of the painting is $20,000, Bill’s is $18,500, and Cameron’s is $16,800. Each bidder’s consumer surplus is vi - p if he or she wins the auction and 0 if he or she loses. The values are private. What is each bidder’s optimal bid? Who wins the auction, and what price does he or she pay? M