You are one of the two bi

You are one of the two bi

You are one of the two bidders in a single-good sealed bid 1st – price auction. Your (correct) estimate is that the value of the good for all bidders must be somewhere between $200 and $300. Your value for the good is $280. Since you have no idea about the other guy?s value you assume it is uniformly distributed on this price interval.a ) What is the optimal bid that you should place?b ) What is the expected payoff of your bid?

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