Consider a second price auction with 2 bidders. Each bidder has valuation ; which is his private information. Valuations are independent and identically distributed uniformly over the interval [0, y] where y> 0. Suppose bidders use the same strictly increasing bidding function ẞ Determine the expected revenue collected from bidder 1.
Consider a second price auction with 2 bidders. Each bidder has valuation ; which is his private information. Valuations are independent and identically distributed uniformly over the interval [0, y] where y> 0. Suppose bidders use the same strictly increasing bidding function ẞ Determine the expected revenue collected from bidder 1.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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