Entice additional bidders to attend your auction

Assignment Help Business Economics

Reference no: EM13833950

In the auction described above, suppose that you could entice additional bidders to attend your auction. However, none of the new bidders would have a valuation greater than $3.0 million. Despite that fact, you expect the amount that the winning bidder must pay to increase regardless of the type of auction you use (first- or second-price sealed bid). For each auction, explain why you would expect the auction price to increase. If you want, you may assume the valuations of the original four participants are $3.0, $2.2, $2.0 and $1.5 million.

Reference no: EM13833950

Questions Cloud

What are the total current liabilities : If a company's accounts payable is $42,041, retained earnings are $412,474, long-term debt is $391,227 and your accrued expenses are $5,966, what are the total current liabilities?

What is the present worth of the expected income : Income from recycling plastics is expected to be $2000 in Year 1 and increase by $500 a year for each of the next 5 years if you buy a sorting machine. Draw a cash flow diagram showing your expected income in years 1, 2, 3, 4, 5, and 6 assuming you b..

Unbiased estimator of the error variance : This assignment will guide you through the derivations needed to determine what is a unbiased estimator of the error variance in the context of a univariate linear regression. This assignment may be quite challenging.

Demand decreases and supply increases then for sure : If both demand decreases and supply increases then for sure. Which of the following will decrease the demand for chicken?

Entice additional bidders to attend your auction : In the auction described above, suppose that you could entice additional bidders to attend your auction. However, none of the new bidders would have a valuation greater than $3.0 million.

Expected variable costs and expected costs from overbooking : Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of..

Two investments have the same expected profit : Imagine you have $20000 and you are willing to invest. A safe investment that promises to pay 5% profit after 1 year. A risky investment that has a 20% chance you might loose half of your money. How much do you expect to get paid for a year in the s..

What are the cross-cultural communication issues : What are the cross-cultural communication issues that could result from differences in the social, political, and legal structures and hierarchies between the foreign country and the United States?

Market expansion of home defibrillators : What are social, political, and legal structures and hierarchies of Taiwan that are relevant to market expansion of Home defibrillators? How do they compare to those of the United States?

User Account

All Pages