Reference no: EM131332894
Consider a sealed-bid second-price auction with two buyers, whose private values are independent; buyer 1's private value is uniformly distributed over [0, 1], and buyer 2's private value is uniformly distributed over [0, 2].
(a) For each buyer, find all weakly dominant strategies.
(b) Consider the equilibrium in which every buyer bids his private value. What is the probability that buyer 1 wins the auction, under this equilibrium? What is the seller's expected revenue in this case?
(c) Prove that at any equilibrium β = (β1, β2) satisfying β1(v) = β2(v) for all v ∈ [0, 1], one has β1(v) = β2(v) = v for all v ∈ [0, 1].
(d) Are there equilibria at which a buyer, whose private value vi is less than 1, does not submit the bid βi(vi) = vi?
|
What is the? bond''s yield to maturity
: What is the? bond's yield to maturity? (expressed as an APR with semiannual? compounding)? If the? bond's yield to maturity changes to 9.7% ?APR, what will be the? bond's price?
|
|
Discuss the physical and cognitive changes
: Discuss the physical and cognitive changes that take place in late adulthood, and explain how to offset some of the negative developments of adulthood and late adulthood
|
|
Conduct a design of experiment in order to test
: Use the data shown in the table to conduct a design of experiment (DOE) in order to test cause-and-effect relationships in business processes for the company.
|
|
Seriously injured in skiing accident
: Ethan Lee was seriously injured in a skiing accident that broke both his legs and an arm. His medical expenses included five days of hospitilization at $900 a day, $6, 200 in surgical fees, $4,300 in physician's fees (inclduing time in the hospital a..
|
|
What is the probability that buyer 1 wins the auction
: Consider the equilibrium in which every buyer bids his private value. What is the probability that buyer 1 wins the auction, under this equilibrium? What is the seller's expected revenue in this case?
|
|
Manufacturer of a fertilizer guarantees
: The manufacturer of a fertilizer guarantees that, with the aid of the fertilizer, 80% of planted seeds will germinate. Suppose the manufacturer is correct. If 9 seeds planted with the fertilizer are randomly selected, what is the probability that ..
|
|
How morality is manifested in everyday life for children
: Be sure that your question relates in some way to issues such as those listed below: The human being's nature and definition of morality and How morality is manifested in everyday life for children and How morality develops in childhood
|
|
Intermediate computations to at least four decimal places
: Carry your intermediate computations to at least four decimal places, and round your answer to at least two decimal places
|
|
Compute probabilities
: The area under the normal curve from x = a to x = b with given mean and standard deviation is the probability that x assumes a value between x = a and x = b. If we are using Table IV in Appendix C, we need to standardize the random variable x usin..
|