User Account

All Pages

Write down further restrictions on values

Assignment Help Macroeconomics
Reference no: EM133202915

Playing Detective

Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Position T receives xT = 200 clicks per day and position B receives xB = 100 clicks per day. There are three bidders (B1 - B3) with the dollar values per click that satisfy v1 > v2 > v3 > 0. All values are positive integers. In this question you will recover values v1, v2, v3 step-by-step by following the list of clues.

The list of clues (proceed in the given order)

(a) Write down restrictions on values that are consistent with the fact that b1 = 20, b2 = 7, b3 = 4 is an equilibrium of the GSP auction.

(b) Write down further restrictions on values that are consistent with the fact that b1 = 10, b2 = 3, b3 = 2 is NOT an equilibrium of the GSP auction due to Bidder 3 having a profitable deviation (strictly positive). At the same time, Bidder 1 and Bidder 2 do not have profitable deviations.

(c) Write down further restrictions on values that are consistent with the fact that p1 = 8 and p2 = 6 are the highest "per click" market clearing prices.

(d) Write down further restrictions on values that are consistent with the fact that Vickrey auction generates 1400 in revenue.

Reference no: EM133202915

Questions Cloud

Discuss material and nonmaterial cultural factors : Discuss Material and nonmaterial cultural factors. Explain any interesting verbal and/or nonverbal communication aspects of both culture
Explain why you remembered any of them : MKTG 201 American Public University System. How many do you think there are? Explain why you remembered any of them. How many billboards there actually are.
Effectiveness of two governmental services : How could I explain the effectiveness of two governmental services (Social Services and Education) that historically or traditionally have been provided by a co
Describe the potential privacy problems : Describe the potential privacy problems that could arise in each of the following three areas of processing, and recommend the corrective action(s)
Write down further restrictions on values : Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Position T receives xT = 200 clicks per day and position B receives xB =
How IoT works in general and in manufacturing in specific : Explain manufacturing worldwide showing some numerical facts indicating the importance of manufacturing
Calculate the price elasticity of demand : Use the mid-point method, calculate the price elasticity of demand for both X and Y when the price increases from $6 to $8.
What are the consequences of not keeping your word : Is keeping your word in business important? Why or why not? What are the consequences of not keeping your word and not being trustworthy?
Discuss why employers find the hiring process difficult : Discuss why employers find the hiring process difficult? Reliance on data science in the hiring process, is this critical to the desired outcome

Reviews

Write a Review

Macroeconomics Questions & Answers

  What print method might you consider for first smaller runs

What print methods might you consider for the first smaller runs? Would change to a different method if the product does well and goes into larger production

  Systems development life cycle

What is a systems development life cycle and What are some of the predictive models associated with the systems development life cycle? APA Format with 2 minimum references.

  Rising jet fuel cost recently led most major us

Rising jet fuel cost recently led most major U.S. airlines to raise fares by approximately 15 percent. Explain how this substantial increase in airfares would affect the following:

  Why some firms choose to relocate some of their facilities

What are some of the economic reasons why some firms choose to relocate some of their productive facilities to foreign countries?

  What would be the role of management?

What would be the role of management?

  What is the budget constraint in leisure-expenditure space

Since she sleeps 9 hours a night, the maximum number of hours she can work a month (taken as 30 days) is 450. She gets pleasure not only from her spending money but also from her leisure hours. Draw her budget constraint in leisure-expenditure spa..

  Financial crisis of fall 2008

Three tools used by the Fed to control the money supply? How the Fed used these three tools during the financial crisis of fall 2008?

  Flexible manufacturing method of production

The only method for analyzing this week's discussion question of whether flexible manufacturing method of production results in optimum output

  How might you measure these costs in dollars

What are the costs of inflation and Which of these costs do you think are most important for the U.S. economy? What are your shoe leather costs of going to the bank? How might you measure these costs in dollars?

  Determine the cross-price elasticity

How would multiplying a positive constant to a linear demand function affect its own-price elasticity of demand? In particular, how would the elasticity of demand of \(Q_{x}=a+bP_{x}+cP_{y}+dI\) at a point compare with the elasticity of demand..

  What rate of return did the CFO earn on the investment

Suppose that now a year later the exchange rate is $1.55 per US pound. What rate of return did the CFO earn on the investment in the British CD

  Expect the pacific oceanto

The CCD (Carbonate Composition Depth) is the water depth atwhich the rate of supply of calcium carbonates from the surface isequal to the rate of dissolution. Do you expect the Pacific Oceanto have a shallower or deeper CCD than the Atlantic Ocean..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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