iformation. Player l's value for the object, denoted by vi is drawn From a continuous distribution with (1.2] as its support. Player 2's value for the object, denoted by v2, is likewise drawn from the interval 0, 1]. 1. What is the equilibrium in dominant strategies if a second price auction is used to allocate the object. Is the outcome ex-post efficient? 2. For what pairs (v1, v2) should Player 1 and Player 2 respectively be allocated the object in a mechanism that maximizes expected revenue for the seller? 3. Comment on the differing allocations you obtained in the previous two parts.

iformation. Player l's value for the object, denoted by vi is drawn From a continuous distribution with (1.2] as its support. Player 2's value for the object, denoted by v2, is likewise drawn from the interval 0, 1]. 1. What is the equilibrium in dominant strategies if a second price auction is used to allocate the object. Is the outcome ex-post efficient? 2. For what pairs (v1, v2) should Player 1 and Player 2 respectively be allocated the object in a mechanism that maximizes expected revenue for the seller? 3. Comment on the differing allocations you obtained in the previous two parts.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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