If Buyers' Private Values Are Drawn from Different Distributions, Then

question 37

Multiple Choice

If buyers' private values are drawn from different distributions, then which of the following statements is incorrect?

• A) Revenue equivalence will no longer hold.
• B) In an English auction, each buyer will be willing to bid up to its reservation price if necessary.
• C) The sealed bid auction will yield greater expected revenue than English auction.
• D) Buyers will employ identical bidding strategies.
• E) In an English auction, the allocation of the item is efficient.

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Definitions:

Goal-Oriented

Focused on setting and achieving specific objectives or targets, often within a defined timeline or set of conditions.

Drive Theory

A psychological theory that attributes motivation to be the result of biological or physiological needs that drive behavior towards satisfying those needs.

Expectancy Theory

A motivation theory that explains how individuals choose behaviors, predicting that people will choose the behavior that entails the most desirable outcomes to them.

Self-Interest Theory

A theory suggesting that human actions are motivated by personal gain, positing that individuals are primarily driven by self-serving interests even in decisions that appear altruistic.