Find the symmetric equilibrium

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Repeat Exercise when the cumulative distribution function of each buyer i's private value is Fi(v) = v³.

Exercise

Consider a symmetric sealed-bid first-price auction with independent private values with n buyers whose cumulative distribution function F is given by F(v) = v².

Find the symmetric equilibrium, compute e_i(v_i) (the expected payment of buyer i if his private value is v_i), compute e_i (the payment that buyer i makes), and compute π (the seller's expected revenue).

Reference no: EM131332867

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