In Nash Equilibrium in a Dutch Auction with Private Values

question 78

Multiple Choice

In Nash equilibrium in a Dutch auction with private values, the optimal bid is calculated by _____, where N is the number of bidders.

• A) N/(N - 1) × the probability of winning the auction
• B) (N - 1)/N × the bidder's maximum willingness to pay
• C) N/(N - 1) × the expected value from winning the auction
• D) (N - 1)/N × the reserve price in the auction

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Definitions:

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses invested funds to generate profit.