The Table Above Lists the Independent Private Values of Five

question 71

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 second- price auction, Bidder _________ wins the auction and pays_______ .

• A)#3; $9 million
• B)#5; $9.5 million
• C)#3; $9.5 million
• D)#3; $10 million

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Definitions:

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Complex psychological states involving subjective feelings, physiological arousal, and expressive behaviors.

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The process of conveying information, feelings, or ideas from one individual or group to another through various means, verbal or nonverbal.