Which auction should you choose to maximize your profit

Reference no: EM13815253

You are considering auctioning a Leonardo Da Vinci original sketch. You entice four bidders to come to your auction. The bidders' valuations of the sketch in decreasing order are $3.0, $2.2, $2.0, and $1.5 (in millions).

If you used a second-price sealed bid auction, who would win and what would the winning price be?

If you used a first-price sealed bid auction and the optimal strategy for the participants was to shade their bid by 20% and the participants used this strategy, who would win and what would the winning price be?

Which auction should you choose to maximize your profit?

Reference no: EM13815253

Questions Cloud

What specific method did african americans attack in society : What specific methods and strategies did African Americans attack segregation in American society in the 1950s and 1960s? In what areas were they most successful? In what areas were they least successful? Why do you think this way?

Assignment in effects of stress : Effects of Stress

Acc what is portfolio diversification : Dr. Bueller had recently overheard a few of his colleagues discussing possible investments in the international marketplace. Wanting to explore all of his potential investment options, he has asked you to explain the various aspects of investing in f..

What the court in the case stated about terry v ohio : Do an Internet search and find a criminal procedure case that relies on the precedent set in Terry v. Ohio. Thoroughly explain the case and state exactly what the court in the case stated about Terry v. Ohio

Which auction should you choose to maximize your profit : You are considering auctioning a Leonardo Da Vinci original sketch. You entice four bidders to come to your auction. The bidders' valuations of the sketch in decreasing order are $3.0, $2.2, $2.0, and $1.5

Social media marketing will be important for your campaign : Summarize why having clear and measurable objectives unique to social media marketing will be important for your campaign.

Describe how memory development and learning affect : Describe how memory development and learning affect each other

Why did the new nationhad to fight the war of 1812 : How did the American System mark the triumph of Federalist economic policy? Why did the new nation (the United States) had to fight the War of 1812? Could this war have been avoided?

Describe the claim : Describe the claim.

User Account

All Pages