In a Sealed-Bid Auction Under a Private-Value Model,the Winning Buyer's

question 38

Multiple Choice

In a sealed-bid auction under a private-value model,the winning buyer's bid is based on:

• A)his reservation price which is equal to his expected profit from the transaction.
• B)the quotation submitted by the second last bidder.
• C)his expectations of the third-highest buyer value.
• D)the expected price of the good that decreases with an increase in the number of bidders.
• E)the highest outstanding value that is below his optimal value.

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Definitions:

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The basic building blocks of all living organisms, consisting of a nucleus and cytoplasm within a membrane.