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A Seller Decides to Sell an Object by Means of a Sealed-Bid

question 15

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A seller decides to sell an object by means of a sealed-bid second-price auction without a reservation price.There are two bidders.The seller believes that for each of the two bidders there is a probability of 1/2 that the bidder's value for the object is $400 and a probability of 1/2 that the bidder's value is $300.The seller believes that these probabilities are independent between bidders.If the bidders bid rationally, what is the seller's expected revenue from the auction?


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Contract Status

The current legal state or condition of a contract, including whether it is active, pending, or terminated.

Illegal Services

Services that are prohibited by law, such as those that involve criminal activities or violate regulations.

Quota

A fixed share or a target that has to be met, often used in the context of sales, production, or immigration.

Secretary of State

A high-ranking official in the government responsible for foreign affairs or domestic administrative matters, depending on the country.

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