A Dealer Decides to Sell an Antique Automobile by Means

question 15

Multiple Choice

A dealer decides to sell an antique automobile by means of an English auction with a reservation price of $200. There are two bidders. The dealer believes that there are only three possible values that each bidder's willingness to pay might take, $7,700, $3,100, and $200. Each bidder has a probability of of having each of these willingnesses to pay, and the probabilities of the two bidders are independent of the other's valuation. Assuming that the two bidders bid rationally and do not collude, the dealer's expected revenue from selling the automobile is

• A) $2,600.
• B) $5,400.
• C) $3,666.67.
• D) $3,100.
• E) $7,700.

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Definitions:

Social Reality

Social reality encompasses the norms, beliefs, and collectively agreed-upon constructs that influence how societies operate and individuals interact within them.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about personal value and competence.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires, reflecting an understanding of oneself.

Narcissism

A personality trait characterized by an inflated sense of self-importance, a deep need for admiration, and a lack of empathy for others.