Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 17, Problem 2Q
To determine
The ways in which a sealed bidding differs from open-outcry auctions.
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Check out a sample textbook solutionStudents have asked these similar questions
Consider the following situation: five individuals are participating in an auction for an old bicycle used by a famous cyclist. The table below provides the bidders' valuations of the cycle. The auctioneer starts the bid at an offer price far above the bidders' values and lowers the price in increments until one of the bidders accepts the offer.
Bidder
Value ($)
Roberto
750
Claudia
700
Mario
650
Bradley
600
Michelle
550
What is the optimal strategy of each player in this case?
Who will win the auction if each bidder places his or her optimal bid?
If Claudia wins the auction, how much surplus will she earn?
“While auctions are appealing in theory, the challenges of auction design in practice are insurmountable” discuss
In 3 short paragraphs describe what advances in auction processes captured the Nobel Prize in econmics in 2020.
Chapter 17 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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