Explain why it is unwise to bid more than your valuation of the good in a sealed bid second-price auction

What will be an ideal response?

Assume you have a valuation of the good equal to $50. The price the winning bidder pays is equal to the second highest bid. If you bid $70 and win, you will pay less than $50 if the second-highest bid (SHB) is less or equal to $50. In this case you are as well off as bidding $50. If you end up paying more you lose because you are paying more than your valuation of the good. So you are either as well off or worse off than bidding your highest valuation.

Economics

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If the money wage rate rises,

A) the AS curve shifts leftward. B) there is a movement down along the AS curve. C) there is neither a movement along or a shift in the AS curve. D) the AS curve shifts rightward. E) there is a movement up along the AS curve.

Economics

In the United States in 2012, the CDC estimated that the total number of people with diabetes (both diagnosed and undiagnosed cases) was highest for people in the age range of ________, and the percentage of people with diabetes was highest for people in the age range of ________.

A) 65 and older; 20-44 B) 65 and older; 65 and older C) 20-44; 45-64 D) 45-64; 65 and older

Economics