Consider a second price auction with 2 bidders. Each bidder has valuation which is his private information. Valuations are independent and identically distributed uniformly over the interval [0, y] where y> 0. Suppose bidders use the same strictly increasing bidding function Determine the expected revenue collected from bidder 1. 36 30 70 3 O y ○ y ³ O 1 3y ○ y²

Consider a second price auction with 2 bidders. Each bidder has valuation which is his private information. Valuations are independent and identically distributed uniformly over the interval [0, y] where y> 0. Suppose bidders use the same strictly increasing bidding function Determine the expected revenue collected from bidder 1. 36 30 70 3 O y ○ y ³ O 1 3y ○ y²

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.10P

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