1. A uniform price auction is an auction where all the winners pay the same price. A k-th price auction is an auction where the price paid by the winner(s) is the k-th highest bid. We run a 3rd price, uniform price auction for two items, so the winners are the two bidders with the highest bid. There are 4 bidders, A, B, C and D, and they bid respectively $10, $9, $8 and $12. (A) Bidders A and B win the auction and pay $9. (B) Bidders A and D win the auction and pay $9. (C) Bidders B and D win the auction and pay $10. (D) Bidders B and C win the auction and pay $8.
1. A uniform price auction is an auction where all the winners pay the same price. A k-th price auction is an auction where the price paid by the winner(s) is the k-th highest bid. We run a 3rd price, uniform price auction for two items, so the winners are the two bidders with the highest bid. There are 4 bidders, A, B, C and D, and they bid respectively $10, $9, $8 and $12. (A) Bidders A and B win the auction and pay $9. (B) Bidders A and D win the auction and pay $9. (C) Bidders B and D win the auction and pay $10. (D) Bidders B and C win the auction and pay $8.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter13: best-practice Tactics: Game Theory
Section: Chapter Questions
Problem 5E
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![4. A uniform price auction is an auction where all the winners pay the
same price. A k-th price auction is an auction where the price paid by
the winner(s) is the k-th highest bid. We run a 3rd price, uniform price
auction for two items, so the winners are the two bidders with the highest
bid. There are 4 bidders, A, B, C and D, and they bid respectively $10,
$9, $8 and $12.
(A) Bidders A and B win the auction and pay $9.
(B) Bidders A and D win the auction and pay $9.
(C) Bidders B and D win the auction and pay $10.
(D) Bidders B and C win the auction and pay $8.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32b4d2c8-dac8-4412-9d58-1853a492db9a%2F41eab526-648a-46c7-98ea-314b352159d2%2Fe6otjhb4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. A uniform price auction is an auction where all the winners pay the
same price. A k-th price auction is an auction where the price paid by
the winner(s) is the k-th highest bid. We run a 3rd price, uniform price
auction for two items, so the winners are the two bidders with the highest
bid. There are 4 bidders, A, B, C and D, and they bid respectively $10,
$9, $8 and $12.
(A) Bidders A and B win the auction and pay $9.
(B) Bidders A and D win the auction and pay $9.
(C) Bidders B and D win the auction and pay $10.
(D) Bidders B and C win the auction and pay $8.
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