The optimal bidding strategy for a second-price auction is
a. To bid your true value
b. To shade your bid well below your true value
c. To shade your bid just a little below your true value
d. To size up your competition to determine how much to shade your bid
a
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Suppose the market clearing price for apples rises from $2.00 to $3.00 per pound, and the overall market clearing output decreases from 1 million to 1/2 million pounds. How can we explain the increase in price and decrease in market output?
A) Supply decreased and demand remained unchanged. B) Supply increased and demand remained unchanged. C) Demand increased and supply remained unchanged. D) Demand decreased and supply remained unchanged.
Game theory can be used for studying which of the following types of market structure?
A) monopoly B) monopolistic competition C) oligopoly D) perfect competition