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If an investment banker makes a best efforts agreement to sell 1,200,000 shares at $10 a share, the investment banker must sell at least 200,000 shares.
Dominant Strategy
Strategy that is optimal no matter what an opponent does.
Payoff
Value associated with a possible outcome.
Optimal Strategy
Strategy that maximizes a player’s expected payoff.
Auctioned
A method of sale where goods or services are sold to the highest bidder.
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