How might this affect buyers'' bidding strategies

Assignment Help Microeconomics
Reference no: EM13880037

Identical items are sold at English auction by one of two methods. One is to auction single items, one at a time. The other is to hold an initial English auction in which the high bidder has the right to buy the lot or a portion of it (at the price he or she bids per unit). If the bidder purchases only some of the items, the remainder are immediately re- auctioned under the same ground rules.

a. Suppose seven identical items are auctioned one by one. What complication does this present for bidders? Which items, the first or the last, would you expect to sell for the lowest prices on average?

b. Suppose the winning bidder can buy all or some of the seven items and any leftovers are re-auctioned. In what sense does this procedure resemble a Dutch auction? How might this affect buyers' bidding strategies?

Reference no: EM13880037

Questions Cloud

Established a trust fund : George Jefferson established a trust fund that provides $170,500 in scholarships each year in perpetuity for worthy students. The trust fund earns a 4 percent annual rate of return. How much money did Mr. Jefferson contribute to the fund assuming tha..
Describe how it performance reports are important in it : Describe how IT performance reports are important in IT governance.
Identifying the components of due process : Working with the school principal, prepare a written summary identifying the components of due process and the rights and responsibilities of students and parents regarding due process hearings as described in the Florida state statutes
Operation and maintenance is the longest and costliest : Operation and maintenance is the longest and costliest part of the SDLC. Explain why this is true.
How might this affect buyers'' bidding strategies : Suppose seven identical items are auctioned one by one. What complication does this present for bidders? Which items, the first or the last, would you expect to sell for the lowest prices on average?
Rate of inflation after the yield curve was sloping downward : Find evidence from published data on past rates of inflation in the U.S. to support your explanation of the downward slope of past yield curves. What happened to the rate of inflation after the yield curve was sloping downward?
What is the annual percentage rate on your account : You are paying an effective annual rate of 15.40 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account?
Describe the purpose of business process reengineering : Describe the purpose of Business Process Reengineering during the System Design phase.
What is the market price of this bond if the face value : Grand Adventure Properties offers a 6 percent coupon bond with annual payments. The yield to maturity is 4.85 percent and the maturity date is 7 years from today. What is the market price of this bond if the face value is $1,000?

Reviews

Write a Review

Microeconomics Questions & Answers

  Determine ways your current employer

Determine ways your current employer(restaurant owner) could leverage organizational culture to improve productivity and employee satisfaction. Provide specific examples to support your response with 1250 words and 4 resources from current co..

  Describe each market structure discussed in the course

Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure. Identify one real-life example of a market structu..

  Describe the opportunity and accounting costs of going green

Describe the opportunity and accounting costs of "Going Green." Use a specific example to illustrate your point. For example, purchasing a Chevy Volt.

  Does badaraccos concept of character illuminate

Does Badaraccos concept of character illuminate Hooker's discussion of integrity

  What is their profit and what is their variable cost

The Shelby Center Lemonade Stand has a fixed cost of $125 and a marginal cost of $0.25. If they sell 800 cups of lemonade at a price of $0.50 per cup, what is their profit? What is their variable cost? What is their marginal profit?

  Find the pareto optimal allocations

Find the Pareto optimal allocations - Find the best allocation according to the utilitarian criterion and Find the quantity of each good traded, and ?nd each person's actual consumption of ale and bread.

  What happens to the price of bonds when the fed sells bonds

What happens to the price of bonds when the Fed sells bonds?

  Describe the competitive environment within the industry

Describe the competitive environment within the industry

  What direction will the demand for dunkin donuts

Dunkin Donuts raises the price of its French Vanilla coffee by 15%. The demand for Dunkin Donuts glazed doughnuts will change by what percentage and in what direction?

  What may cause individual household to buy more goods

Define Demand and Supply - What may cause individual household to buy more goods and services?

  Examine the determinants of price elasticity of demand and

analyze the determinants of the price elasticity of demand and determine if each of the following products are elastic

  If people behave according to rational expectations theory

If people behave according to rational expectations theory, people would expect the rate of inflation this year to be:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd