The Optimal Strategy for a Bidder in a Private-Values Vickrey

question 34

True/False

The optimal strategy for a bidder in a private-values Vickrey auction is to bid his true valuation.

---

Definitions:

Negative Income Tax

A system of income support that provides individuals with an income guarantee. If an individual's earnings fall below a certain level, they receive supplemental pay from the government rather than paying taxes.

Earned Income Tax Credit

A refundable tax credit for low to moderate income working individuals and families, aimed at reducing poverty and encouraging work.

Unemployment

A situation where individuals who are capable of working and willing to work are not able to find employment.

Temporary Assistance

A form of financial aid provided by government agencies to individuals and families in need for a limited period.