Explain why the dominant strategy equilibrium in an open outcry English auction is also the Nash equilibrium
What will be an ideal response?
The dominant strategy equilibrium in an open outcry English auction occurs if each bidder bids up to his or her maximum willingness to pay for the item being auctioned. This is because a bidder is always better off by continuing to bid until price exceeds his or her willingness to pay irrespective of the bids placed by the other bidders. This equilibrium is also the Nash equilibrium because it is the best strategy that each bidder can use given the strategies of the other bidders.
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When two variables move in opposite directions, they are said to be:
A) uncorrelated. B) positively correlated. C) negatively correlated. D) directionally correlated.
Suppose a bank has total assets of $3,000,000,000 and total deposits and other liabilities of $2,800,000,000. The bank's leverage ratio is
A) 6.7%. B) 7.1%. C) 5.6%. D) 93.3%.