a) Your company is bidding for a service contract in a first-price sealed-bid auction. You value...

a) Your company is bidding for a service contract in a first-price sealed-bid auction. You value the contract at $12 million. You believe the distribution of bids will be uniform, with a high value of $16 million and a low value of $3 million. What is your optimal strategy with 5 bidders?

b) Your company is bidding for a service contract in a first-price sealed-bid auction. You value the contract at $12 million. You believe the distribution of bids will be uniform, with a high value of $16 million and a low value of $3 million. What is your optimal strategy with 10 bidders?

c). Your company is bidding for a service contract in a first-price sealed-bid auction. You value the contract at $12 million. You believe the distribution of bids will be uniform, with a high value of $16 million and a low value of $3 million. What is your optimal strategy with 20 bidders?

d) Your company is bidding for a service contract in a second-priced sealed bid auction. You value the contract at $12 million. You believe the distribution of bids will be uniform, with a high value of $16 million and a low value of $3 million. What is your optimal strategy with 10 bidders?

Expert Solution

Rahul Sunny answered 1 year ago

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