In an Independent Private Values Sealed- Bid Second- Price Auction

question 104

Multiple Choice

In an independent private values sealed- bid second- price auction, if a participant bids more than their valuation this_______ _ an inferior strategy because the high bid_______ _.

• A)is; can only lower the amount paid
• B)is not; cannot affect the amount paid or raise the amount paid
• C)is not; can only lower the amount paid
• D)is; cannot affect the amount paid or raise the amount paid

---

Definitions:

Marketers

Individuals or entities involved in the promotion, selling, and distribution of products or services, aiming to meet consumers' needs and drive sales.

Counterfeiting

The act of making an imitation of an item, especially with the intent to deceive or defraud, by passing off the fake item as genuine or original.

Inauthentic

Lacking genuineness or sincerity, often applied to actions, products, or statements that do not reflect true intentions or values.

Authenticity

The truthfulness of origins, attributions, commitments, sincerity, devotion, and intentions of a brand or entity.