In: Economics
Assume that there are 10 risk-neutral bidders participating in an independent private value auction. The bidders assume that item’s value is normally distributed between $10,000 and $30,000. Determine the optimal bidding strategy for each of the following options if you value the item at $20000.
3.1 First-price, sealed-bid auction
3.2 Dutch auction
3.3 Second-price, sealed-bid auction
3.4 English auction