The Table Above Lists the Independent Private Values of Five

question 97

Multiple Choice

The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their o value and does not know the private values of the other participants.
-Refer to the table above. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a sealed- bid first- price auction, Bidder ________ wins the auction and pays ________ .

• A)#5; 9.5 million
• B)#5; a value less than $10 million and greater than $9.5 million
• C)#3; a value less than $10 million and greater than $9.5 million
• D)#3; $10 million

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Definitions:

Cognitive Approach

A psychological perspective that emphasizes mental processes such as perception, memory, and problem-solving.

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often symbolic or seemingly nonsensical.

Modification

The process of changing or altering something in order to improve it or to accommodate new conditions.

Hypnosis

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes.