Consider a second price auction for a single item

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Question: Consider a second price auction for a single item with two bidders. Suppose the bidders have independent private values, uniformly drawn in the interval [0, 1]. Suppose the seller sets a reserve price p = 2/5: that is. only bids above 3) 2 2X5 can win. If a bidder bids above p and the other bids below 33, then the ?rst bidder wins and pays a price 33. If both bid above p, then the highest. bidder wins and pays the second highest price. In the Bayesian equilibrium in undominated strategies, what is the seller's expected revenue?

Reference no: EM133401472

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