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1. The deduction leading to equation (3.1) is incomplete as b1 may not be in the range of b(·). Reduce the general case to the case b1 ∈ b([0, 1]).
2. Compute the seller's expected revenue if the number of bidders goes to infinity.
3. In the text we assumed that in case of a tie the object is not delivered to any bidder. Show that the equilibrium strategies obtained above (for both first- and second-price auctions) still hold under any tie-breaking rule.
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1.a forester wishes to predict the volume in cubic feet of usable lumber in a certain species of tree from the height
A summary of the qualifications and background information about 5 candidates is shown in the following table. Please use this table and the “rating-and-weighting” approach (single-attribute value functions, swing weights) explained in class to ident..
You are the owner of a small casino in Las Vegas. You want to reward high rollers who come to your casino. You want to give free accomodations to no more than 10% of your patrons. Suppose that the mean amount wagered by all patrons is $287 with a ..
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Describe a Bernoulli experiment and give two examples. What is the connection between a Bernoulli experiment and a binomial distribution? Explain.
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