Which of the Following Is the Nash Equilibrium Outcome of an English

question 96

Multiple Choice

Which of the following is the Nash equilibrium outcome of an English auction?

• A) The highest bidder pays exactly the same price as the second-highest bidder.
• B) The highest bidder pays a fraction more than the second-highest bidder.
• C) The highest bidder pays the expected value of the second-highest bidder's willingness to pay.
• D) The highest bidder pays half the bid of the second-highest bidder.

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Definitions:

Large Sums

Considerable amounts of money, often involved in financial transactions or investments.

Independence

The state of being free from the control or influence of others, often referring to self-sufficiency in business operations.

Small Businesses

Enterprises characterized by fewer employees and lower revenue compared to larger companies.

Small Business Manager

A person responsible for overseeing and directing the operations of a small business.