# Answer to Question #63681 in Microeconomics for boset00

Question #63681

Suppose that there are two bidders whose valuations are distributed over [0, +∞], identically and independently according to the exponen tial distribution with parameter λ > 0. In other words, for any x > 0,

the p.d.f is f(x, λ) = λe^−λx

Derive the symmetric, monotonic equilibrium bid function for the first

price auction in this case.

the p.d.f is f(x, λ) = λe^−λx

Derive the symmetric, monotonic equilibrium bid function for the first

price auction in this case.

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