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.
Q: A different industry has a Demand curve given by Q = 800p -2 Assume that a monopolist supplies this…
A:
Q: Suppose there are two types of people, high risk (H) and low risk (L) with utility function U(c) =…
A: Utility refers to the pleasure or satisfaction derived from consuming a good, service, or engaging…
Q: Complete the following flow chart illustrating how the current interest on reserve balances will be…
A: Here's how the flowchart works:Current IORB: This is the starting point of the flowchart. The Fed…
Q: Increases in productivity are difficult to achieve ifthe task is more good-producing and…
A: Economics deals with allocation of limited resources to maximise the welfare of the economy. It also…
Q: None
A: First QuestionDebt financing occurs when a firm sells fixed income products, such as bonds, bills,…
Q: please give me correct answer with calculation
A: Step 1:a. Marginal Revenue (MR) and Average Revenue (AR):In a perfectly competitive market, the…
Q: 23. An economic downturn lead to your AAA bonds to be downgraded to A and now sell at i=11.11%. If…
A: A bond is a debt instrument issued by governments, municipalities, corporations, or different…
Q: Answer relevant with diagram
A: The marginal rate of substitution shows how a consumer is willing to sacrifice one good (Y) to get…
Q: Auria will produce a vehicle component and knows that each start generates a cost of 5,000 pesos.…
A: The total annual cost of the business means the expense incurred by the business for buying,…
Q: Revenue and cost (dollars per unit) 50 40 30 20 20 10 O 10 20 30 MC ATC 40 50 e figure above shows a…
A: Understanding a Perfectly Competitive Firm's Behavior: Profit Maximization and Market…
Q: Don't use hand raiting please and please currect answer please
A: Step 1: Amides undergo a reduction in the presence of LiAlH(O-tBu)3 to give imines as intermediate…
Q: Cable company management wants to know how to maximize total profit, and what price to set. 9)…
A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: Dataware is trying to determine whether to give a $10 rebate, cut the price $6, or have no price…
A: Business economics is concerned with navigating complex market scenarios that necessitate extensive…
Q: ΔRoR for the first increment (Alt. C-Alt. A) is ___________________.…
A: Based on the data in the picture, the response to the query regarding the AROR (Annual Rate of…
Q: None
A: Hypothetical Closed EconomyGiven information:Households spend 0.75 of each additional dollar they…
Q: Question 1- Question 2-
A: #Question 1: The profit earned by the profit-maximizing monopolist is represented by the area…
Q: Sarah with preferences U = c1^1/3, c2^2/3 has a human capital production function R = 6E1/2. She…
A: In economics, a production function is a means of examining the relationship between input and…
Q: Asaaregent needed
A: The objective of the question is to identify the correct definition of game theory from the given…
Q: Typed please and quality solution please for better ratings
A: Approach to solving the question: Detailed explanation: Examples: Key references
Q: Which of the following is NOT a problem associated with implementing fiscal policy. a. Policy lags…
A: Fiscal policy refers to the government's use of taxation and public expenditure to influence the…
Q: Antonio has a utility function U = W, where W is his wealth in millions of dollars and U is the…
A:
Q: Bro my hero expert Hand written solution is not allowed
A: In a monopoly market, marginal revenue (MR) is not equal to price, unlike in perfect competition.…
Q: The great expert Hand written solution is not allowed.
A: Perfect Competition Characteristics:Many Buyers and Sellers: There are numerous buyers and sellers…
Q: Working with the Aggregate Consumption Function Complete the following questions. 1. Assume there…
A: Ans. ) Given the question is related to the aggregate consumption function... The normal consumption…
Q: The graph below depicts an economy where a decline in aggregate demand has caused a recession.…
A: The impact of change in aggregate demand due to the change in government spending is more than that…
Q: Consider the effects of two taxes: lump-sum tax and a price distorting tax. Consider a consumer. Let…
A: Approach to solving the question: Detailed explanation: In the diagram, the intercept is not…
Q: 5. Problems and Applications Q5 Economists use labor-market data to evaluate how well an economy is…
A: Here we have to analyse what will happen to the unemployment rate and employment population ratio in…
Q: The graph below shows the cost and revenue curves for IchiBan Inc., a monopolist. a. What is the…
A:
Q: Which of the following factors will affect the slope of the aggregate demand curve? OA. I C. * OE.…
A: Aggregate demand in the economy represents the total goods and services produced in the economy in a…
Q: 16. Revenue with Substitutable Products. The Camera Shop sells two popular models of digital single…
A: In part (a), we need to construct a model for the total revenue. I provided the formula for total…
Q: Expert sir asaap answer
A: Option a: This option is correct (a) The pure strategy Nash equilibria can be Pareto ranked.Players…
Q: Can you help me graph that information
A: Approach to solving the question:Detailed explanation: Examples: Key references:
Q: When would a buyer purchase an imitation meat
A: Meat consumption has several negative influences on the economy. It results in greenhouse emissions…
Q: Urgent help
A: Option d: This option is correct d) NeoclassicalNeoclassical Economics is an approach to economics…
Q: Supply (P-Q) Sotal Maral Demand (P-200-Q) P-e-Q Q What kind of externality is present in this…
A: Since multiple independent McQs are posted, according to the guidelines, the first McQ is answered.…
Q: Paste X A AY Font Paragraph Styles Editing Dictate Sensitivity Editor Reuse Styles P Voice…
A: Gas Stations Charging the Same Price: A cartel is not always present when gas stations in a given…
Q: 2. An accident costs $1000 if it occurs. If neither party takes precaution, the chance of an…
A: The accident costs $1000.The chance of an accident to occur is 10%.The effect of precaution taken by…
Q: Charlie has a repair shop that uses three inputs: Unskilled Labor (quantities of which will be…
A: The level of unskilled labor is L.The level of skilled labor is H.The machinery level is K. Using…
Q: A contractor has an excavator requiring repairs within her fleet of cquipment for executing…
A: The annual worth ascertains the annual cash flow throughout the investment period which is…
Q: Chapter 20 Problems & Applications On the following graph, indicate the short-run and long-run…
A: Assuming the graph shows an increase in aggregate supply, here is how you can analyze the short-run…
Q: As a result of the change in the price of wheat the wage level for wheat pickers in Kansas?…
A:
Q: please give me correct answer otherwise i give Downvote
A: Antonio's consumption choices provide insights into the nature of goods. Let's analyze the…
Q: in another economy, the MPC = 4/5, government needs to increase expenditures $20 to complete a…
A: In this scenario, the marginal propensity to consume (MPC) is 4/5, meaning that for every additional…
Q: None
A: Autarky is an economic concept that refers to a state of self-sufficiency or economic independence,…
Q: Draw an isoquant-isocost diagram consistent with points A and B on the long-run average cost curve…
A:
Q: Table 18-2 The information in the following table shows the total demand for internet radio…
A: Why is scenario a the most profitable for the two firms?Scenario a is the most profitable for the…
Q: The questions are based on the following diagram: Percentage changes 35 30 25 20 15 10 5 0 0 1 2 3 4…
A: Based on the diagram, variable 1 shows a negative correlation with variables 2 and 3. It clearly…
Q: What is the future value of $500,000 invested for 3 years at an interest rate of 4.5% per annum,…
A: The objective of this question is to calculate the future value of an investment of $500,000 for a…
Q: None
A: Marginal Factor Cost, in simple terms, is the change in total cost due to an additional unit of…
Q: Introduce the concept of the yield curve and its relevance in economic activities in the Caribbean.…
A: Overview of the Yield Curve and the Caribbean Region's Significance:The relationship between the…
H10.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- A cool kid is willing to rename himself for a profit. He decides to auctionoff the naming right. Two bidders show interest. Their valuations for thenaming right are independently and uniformly distributed over [0;100]:There are several possible ideas to design the auction. The auction runs as follows. Both bidders are invited to the sameroom; an auctioneer will start the auction with an initial price 0 and increase it by $1 every minute. The bidders are not allowed to say anything during the process, but they can walk out of the room at any moment. If one bidder walks out of the room when the price increases to p(the bidder does not need to pay), the remaining bidder will be awarded the naming right for a price of p. If both walk out when the price reaches p, the naming right is not assigned and the two bidders do not need to pay. What should the bidders do? Explain your answer.A cool kid is willing to rename himself for a profit. He decides to auctionoff the naming right. Two bidders show interest. Their valuations for thenaming right are independently and uniformly distributed over [0,100].There are several possible ideas to design the auction. a) The auction runs as follows. Both bidders are invited to the sameroom; an auctioneer will start the auction with an initial price 0, and increase it by $1 every minute. The bidders are not allowed to say anything during the process, but they can walk out of the room at any moment. If one bidder walks out of the room when the price increases to p (the bidder does not need to pay), the remaining bidder will be awarded the naming right for a price of p. If both walk out when the price reaches p, the naming right is not assigned and the two bidders do not need to pay. What should the bidders do? Explain your answer. (b) Both bidders are invited to submit their bids covertly (bids are non-negative real numbers).…A cool kid is willing to rename himself for a profit. He decides to auctionoff the naming right. Two bidders show interest. Their valuations for thenaming right are independently and uniformly distributed over [0,100].There are several possible ideas to design the auction. The auction runs as follows. Both bidders are invited to the same room; an auctioneer will start the auction with an initial price 0, and increase it by $1 every minute. The bidders are not allowed to say anything during the process, but they can walk out of the room at any moment. If one bidder walks out of the room when the price increases to p (the bidder does not need to pay), the remaining bidder will be awarded the naming right for a price of p. If both walk out when the price reaches p, the naming right is not assigned andthe two bidders do not need to pay. What should the bidders do? Explain your answer.
- You are one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives that bidders' valuations for the item are evenly distributed between $20,000 and $50,000. For each of the following auction t determine your optimal bidding strategy if you value the item at $35,000. a. First-price, sealed-bid auction. O Bid $20,00. O Bid $50,00. O Bid $35,00. O Bid $32,000 b. Dutch auction O Let the auctioneer continue to lower the price until it reaches $20,000, and then yell "Minel". O Let the auctioneer continue to lower the price until it reaches $35.000, and then yell "Mine!" O Let the auctioneer continue to lower the price until it reaches $32,000, and then yell "Mine!" O Let the auctioneer continue to lower the price until it reaches $50,000, and then yell "Mine!". C. ond-price, sealed-bid auction O Bid $50,00. O Bid $35.000 O Bid $32,00. b. Dutch auction. O Let the auctioneer continue to lower the price until it reaches $20,000, and then yell…Consider the following game. Player S DE F A 10, 10 8, 7 8, 8 Player R B 8,7 9, 8 9, 12 C 9,8 7, 10 12, 7 Find the best response of step-2 Player S assuming that step-0 players (either Ror S) choose the strategy at random with equal probability. Select one: O a. F O b. E O c. B O d. A O e. C O f. DConsider a second price auction with 2 bidders. Each bidder has valuation 0; 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 B Determine the expected revenue collected from bidder 1. o У 20 O y ³ 6 o 1 3y 3
- Exercise 6.8. Consider the following extensive-form game with cardinal payoffs: 1 R O player pay 000 2 1 M 3 b 010 O player 3's payoff 1 2 221 2 000 0 0 (a) Find all the pure-strategy Nash equilibria. Which ones are also subgame perfect? (b) [This is a more challenging question] Prove that there is no mixed-strategy Nash equilibrium where Player 1 plays Mwith probability strictly between 0 and 1.Consider a similar auction problm as before. Two Örms compete for a contract to build a university building. Their construction costs are independent and uniformly drawn from [0; 1]: (a) Suppose the auction is conducted as follows. Price starts at 1 (at this price both bidders would be happy to win the project). The price goes down continuously: at time t 2 [0;1]; the price will be 1 t. At any time t; any bidder can shout ìáoccinaucinihilipiliÖcious.î Once that happens, the price will stop to decline. The bidder who remains silent becomes the winner and he is paid the price at that moment. If both players say it at the same time, the auction ends without a winner. If no player speaks until t = 1 (and the price will be zero by then), the game ends and a winner is selected randomly for a price of 0: Analyze this auction. You donít have to provide rigorous mathematical proofs. How does this auction relate to (a) or (b)? 1 (b) Suppose the auction is conducted as follows.…2. Consider a first-price sealed-bid auction with known valuations. There is one object for sale and there are two bidders. The bidders' valuations are commonly known: One bidder has valuation 5 for the object. The other bidder has valuation 10 for the object. The rules of the auction are as follows: The bidders submit bids simultaneously and indepen- dently. Only integer bids are permitted, i.e., allowable bids are 0, 1, 2, .. with the highest bid is equally likely to be declared the winner (standard tie breaking). The winner gets the object and pays her bid. Each of the bidders (a) Find each bidder's best reply function. (b) Find all Nash equilibria. (c) Are any of the Nash equilibria strict?
- Consider a first-price sealed bid auction of a single object with two bidders j = 1,2 and no reservation price. Bidder 1′s valuation is v1 = 2, and bidder 2′s valuation is Consider the following auction. Two buyers (i = 1,2) have valuations uni- formly distributed over [0,1]. The good is assigned to the highest bid, but the winner pays the average of his bid and the losing bid. Use the revenue equivalence principle to derive the optimal strategies in a symmetric equilibrium. Assume that the optimal bid is a linear function of the buyer’s valuation: b(vi) = cvi where c is a real number.In the event of a tie, the object is awarded by a flip of a fair coinA firm plans to expand its product line and faces a dilemma whether to build a small or largefacility to produce new products. If it builds a small facility and demand is low, the NPV afterdeducting for building costs will be four hundred thousand pesos. If demand is high, the firm caneither maintain the small facility or expand it. Expansion would have an NPV of four hundredfifty pesos while maintaining the small facility would have an NPV of fifty thousand pesos. If alarge facility is built and demand is high, the estimated NPV would be eight hundred thousandpesos. If demand turns out to be low, the NPV would be a loss of ten thousand. The probabilitythat the demand is high is estimated to be sixty percent.a. Analyze using a decision tree.b. Compute for EVPI.c. Determine the range over which each alternative would be best in terms of the valuewhen demand is low.2. Consider the following Bayesian game with two players. Both players move simultaneously and player 1 can choose either H or L, while player 2's options are G, M, and D. With probability 1/2 the payoffs are given by "Game 1" : GMD H 1,2 1,0 1,3 L 2,4 0,0 0,5 and with probability 1/2 the payoffs are according to "Game 2" : G |M|D H 1,2 1,3 1,0 L 2,4 0,5 0,0 (a) Find the Nash Equilibria when neither player knows which game is actually played. (b) Assume now that player 2 knows which one among the two games is actually being played. Check that the game has a unique Bayesian Nash Equilibrium.