You are playing a game in which a dollar bill is auctioned. The highest bidder receives the dollar in return for the amount bid. However, the second-highest bidder must pay the amount that he or she bids, and gets nothing in return
The optimal strategy is: A) to bid the smallest allowable increment below $1.
B) to bid nothing.
C) to bid $0.99.
D) to bid more than a dollar.
B
Economics
You might also like to view...
________ is gross investment minus ________
A) The capital stock; net investment B) The capital stock; depreciation C) Depreciation; replacement investment D) Net investment; depreciation
Economics
A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called
A) debt deflation. B) moral hazard. C) insolvency. D) illiquidity.
Economics