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whipped whipped
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7 years ago
Consider the following situation where five individuals are participating in an auction for an old bicycle used by a famous cyclist. The table below provides the bidders' valuation of the cycle. The auctioneer starts the bid at an offer price far above the bidders' value and lowers the price, in increments, until one of the bidders accepts the offer.

Bidders   Values (in dollars)
Roberto   750
Claudia   700
Mario   650
Bradley   600
Michelle   550

a)   What is the optimal strategy of each player in this case?
b)   Who will win the auction if each bidder places his optimal bid?
c)   If Claudia wins the auction, how much surplus will she earn?
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Microeconomics

Microeconomics


Edition: 1st
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losteinlostein
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whipped Author
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7 years ago
this is exactly what I needed
rhockeygirl
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Just got PERFECT on my quiz
ky
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2 hours ago
Helped a lot
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