Define dominant strategy to bid one valuation

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Reference no: EM131789434

Question: A uniform price auction is an auction where all the goods sold through the auction (or units of the good) are sold at the same price. Suppose there are k units of a good to be sold, and each bidder wants at most 1 unit of the good. We run a (k + 1)-th price, uniform price auction. That is, the k highest bidders win and they all pay the same price, the (k + 1)-th bid. We assume that there are at least k + 1 bidder, k = 2 (we've seen in class the case when k = 1). In this auction, is it a dominant strategy to bid one's valuation? If yes, provide a sketch of the proof. If not, provide an example.

Reference no: EM131789434

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