What is the sellers expected revenue in given case

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Reference no: EM131332932

Repeat Exercise for the case in which there are two buyers, and their private values V₁ and V₂ are independent, V₁ is uniformly distributed over [0, 1] and V₂ is uniformly distributed over [0, 1] given by the cumulative distribution function F₂(v) = v₂.

Exercise

Suppose that there are n buyers whose private values are independent and uniformly distributed over [0, 1]. Answer the following questions:

(a) What is the individually rational, incentive-compatible direct selling mechanism that maximizes the seller's expected revenue?

(b) In this mechanism, what is each buyer's probability of winning the object, assuming that each buyer reports his true private value?

Reference no: EM131332932

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