Four bidders try to buy a certain stamp. It is commonly known that their valuations are between 200 and 600, equally likely. Every bidder knows his/her valuation but does not know the valuations of the others. The actual valuations are: V₁ = 400 V3 = 520 V4 = 560 V₂ = 480 The seller of the stamp obtains in the equilibrium of a first price auction an expected payoff of:
Four bidders try to buy a certain stamp. It is commonly known that their valuations are between 200 and 600, equally likely. Every bidder knows his/her valuation but does not know the valuations of the others. The actual valuations are: V₁ = 400 V3 = 520 V4 = 560 V₂ = 480 The seller of the stamp obtains in the equilibrium of a first price auction an expected payoff of:
Chapter1: Making Economics Decisions
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![Four bidders try to buy a certain stamp. It is commonly known that their valuations are between 200 and 600,
equally likely. Every bidder knows his/her valuation but does not know the valuations of the others. The actual
valuations are:
V3 = 520
V₁ = 400
V₂ = 480
The seller of the stamp obtains in the equilibrium of a first price auction an expected payoff of:
a. 450
b. 470
C. 500
d. 480
e. None of the above
V4 = 560
Problem #40:
The same as Problem #6 but now the auction is a second price auction:
a. 480
b. 560
c. 500
d. 470
e. None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd06af96d-046d-4223-8fe8-7f9f9126d044%2F0742b897-752c-4282-b434-871427311b44%2Fc8pztw_processed.png&w=3840&q=75)
Transcribed Image Text:Four bidders try to buy a certain stamp. It is commonly known that their valuations are between 200 and 600,
equally likely. Every bidder knows his/her valuation but does not know the valuations of the others. The actual
valuations are:
V3 = 520
V₁ = 400
V₂ = 480
The seller of the stamp obtains in the equilibrium of a first price auction an expected payoff of:
a. 450
b. 470
C. 500
d. 480
e. None of the above
V4 = 560
Problem #40:
The same as Problem #6 but now the auction is a second price auction:
a. 480
b. 560
c. 500
d. 470
e. None of the above
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