Which of the Following Is True of an English Auction

question 20

Multiple Choice

Which of the following is true of an English auction with private buyers?

• A)The bid value can exceed the reservation price of the buyer who wins.
• B)A typical buyer shades his/her bid below the true private value.
• C)A bidder takes a decision under uncertainty.
• D)The final price is approximately equal to the second highest buyer value.
• E)The first bidder obtains the item getting auctioned at the current price.

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Definitions:

Defensive Attribution

Defensive attribution is a psychological process in which individuals attribute causes for events in a way that defends their self-esteem or minimizes their feelings of vulnerability.

Self-Serving Bias

A common tendency for individuals to attribute their successes to personal characteristics and their failures to external factors.

Self-Effacing Bias

The tendency to downplay one's own success or attribute positive outcomes to external factors rather than to one's own efforts or abilities.

Rationalization Attribution

The process of explaining an individual's behavior with logical, but not always true, reasons to justify actions or opinions.