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
Chapter15A: Auction Design And Information Economics
Section: Chapter Questions
Problem 7E
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Question
![Q1
Market-clearing Prices
Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Position
T receives rr = 150 clicks per day and position B receives rg = 50 clicks per day. There are
four bidders (B1-B4) with the following dollar values per click: v = 8, v 6, vs = 4, vs 2.
(a) Find the efficient assignment.
(b) Find the lowest per click market-clearing prices.
(c) Find the highest per click market-clearing prices,
(d) Fully specify and draw the complete set of ALL per click market-clearing prices.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F018b5c63-bc84-42c3-9a79-0e0099e5c58d%2F4739aefc-6b0a-43d5-b3c5-e4aa7e17d6ea%2Fqmo8p2l_processed.png&w=3840&q=75)
Transcribed Image Text:Q1
Market-clearing Prices
Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Position
T receives rr = 150 clicks per day and position B receives rg = 50 clicks per day. There are
four bidders (B1-B4) with the following dollar values per click: v = 8, v 6, vs = 4, vs 2.
(a) Find the efficient assignment.
(b) Find the lowest per click market-clearing prices.
(c) Find the highest per click market-clearing prices,
(d) Fully specify and draw the complete set of ALL per click market-clearing prices.
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