What Is the Dominant Strategy in a Second-Price Auction

question 100

Multiple Choice

What is the dominant strategy in a second-price auction?

• A) bidding below one's true value
• B) bidding above one's true value
• C) bidding one's true value
• D) There is no dominant strategy.

---

Definitions:

Chase Strategy

A demand-matching approach in capacity planning, where output rates are adjusted to match demand forecasts, minimizing inventory levels.

Aggregate Planning

A management strategy aimed at balancing production, inventory levels, and workforce to meet forecasted demand over a medium-term horizon.

Demand Estimation

The process of determining the expected demand for a product or service, based on historical data, market trends, and statistical models.

Level Scheduling

A production strategy aiming to maintain a consistent production rate or workforce level over time, despite fluctuating demand.