Best estimate of the expected revenue from the auction

Assignment Help Business Economics

Reference no: EM13987022

A bidders' value for a good may be low ($2), medium ($5), or high ($7). There are an equal number of potential bidders having each value. Suppose two bidders show up for an auction at which the good is offered. The possible outcomes of the auction are listed below. What is the best estimate of the expected revenue from the auction, assuming there is no minimum bid increment?

Reference no: EM13987022

Questions Cloud

What is project irr : What is each project's IRR? If each project's cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?

Calculate the energy released in the alpha decay : Calculate the energy released in the alpha decay of 232Th. What fraction of the mass of a single 232Th is destroyed in the decay? The mass of 228Ra is 228.031064 u.

Highest bidder at a price equal to the highest bid : In which type of auction is the item awarded to the highest bidder at a price equal to the highest bid? A Vickrey Auction B Common-Value Auction C Sealed-bid first-price auction D Second-Price Auction

Disadvantages exist to filing a consolidated return : Advantages and disadvantages exist to filing a consolidated return. Research the various resources you have available and identify an example of when a consolidated return has been advantageous to a group and when consolidation status has not work..

Best estimate of the expected revenue from the auction : A bidders' value for a good may be low ($2), medium ($5), or high ($7). There are an equal number of potential bidders having each value. Suppose two bidders show up for an auction at which the good is offered. The possible outcomes of the auction ar..

Values based on family-health-achievements and wealth : In 900 words or more needs to be general in nature and should reflect your beliefs, and not necessarily a statement of fact. Are your values based on family, health, achievements, wealth, job success, happiness, faith, love, or anything else that you..

Problem regarding the standard deviation of return : Bob and Ann both make optimal portfolio allocations. Bob has $ 1000 to invest, Ann has $ 2000 to invest. There are 3 assets that they can invest in: a risk free asset with a rate of return of 5%, and two risky assets with the following properties:

The magnitude of deadweight loss from the price ceiling : Calculate the magnitude of deadweight loss from the price ceiling. Find a price floor that will result in the same magnitude of deadweight loss.

Assessment of risk for fabrication of helicopter spar : Reston Aviation has been awarded a government contract that requires the fabrication of an unusually large helicopter blade spar. Barbara Matthews, Reston’s President, is faced with two alternatives: Assessment of Risk for Fabrication of Helicopter S..

User Account

All Pages