You are a bidder in an independent private values auction, and you value the object at $4,500. Each bidder perceives that valuations are uniformly distributed between $500 and $9,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:   a. 2 bidders. Bid: $  b. 10 bidders. Bid: $  c. 100 bidders. Bid: $

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter18: Auctions
Section: Chapter Questions
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You are a bidder in an independent private values auction, and you value the object at $4,500. Each bidder perceives that valuations are uniformly distributed between $500 and $9,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:

 

a. 2 bidders.

Bid: $ 


b. 10 bidders.

Bid: $ 


c. 100 bidders.

Bid: $ 

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