67 083
Assignments Done
99,3%
Successfully Done
In November 2018

Answer to Question #63313 in Microeconomics for boset

Question #63313
Consider the N- bidder auction model. Each bidder's valuation,
Vi, is uniformly distributed on [0, 1], and independent of the other
bidders' valuations, for i = 1,....,N.
i. In the rst price auction, let us focus on strategies of the
form Bi(v) = B(v) = kv for each i, where k is a positive
constant. Show that in a Nash equilibrium where each player
bids according to B(.), k = ((n-1)/n).
ii. Show that in the second price auction, it is weakly dominant
for each bidder to bid his true valuation, that is, Bi(v) = v.
Expert's answer

Not answered

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions