A First Edition of Adam Smith's Wealth of Nations (Published

question 22

Multiple Choice

A first edition of Adam Smith's Wealth of Nations (published in 1776) is being auctioned via the Internet.The current owner starts by posting his own "bid" for it.Bidders are allowed to submit bids at any time during a one-week interval.For the following week, bids will be accepted only if they exceed the currently posted high bid.Throughout the week, the highest bid that anyone has made so far will be posted.At the end of the week, the book will be sold to the highest bidder at the price that he or she bid for it.Assuming that bidders understand the rules of the auction, the outcome of this auction will be similar to that for

• A)an English auction with a reserve price equal to the owner's bid.
• B)a Dutch auction with a reserve price equal to the owner's bid.
• C)a sealed-bid auction in which the book is sold to the highest bidder at the highest bidder's bid price.
• D)a common-value auction.
• E)an English auction with no reserve price.