In General, with a First-Price Sealed-Bid Auction with Private Values

question 3

Multiple Choice

In general, with a first-price sealed-bid auction with private values, the Nash equilibrium bids will:

• A)increase as the number of bidders goes up.
• B)decrease as the number of bidders goes up.
• C)not be affected by the number of bidders in the auction.
• D)decrease at a rate of 1/N where N is the number of bidders in the auction.

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Definitions:

Coefficient Of Variation

A uniform metric for assessing the spread of a probability distribution or frequency distribution, determined by dividing the standard deviation by the mean.

Coefficients Of Skewness

Measures used to quantify the degree of asymmetry of a distribution around its mean, indicating whether a distribution tails off more to one side or the other.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable about its mean.

Correlation

A statistical measure that describes the extent to which two variables move in relation to each other.