The optimal bid for an individual participating in a first-price, sealed-bid auction with independent private values is to bid:

A. less than the individual's valuation of the item.
B. There is not an optimal bid strategy for all individuals when independent private values exist.
C. exactly the individual's valuation of the item.
D. more than the individual's valuation of the item.

Answer: A

Economics

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Under conditions of perfect competition, an individual producer

a. always maximizes output. b. operates where MR equals MC. c. never suffers a loss. d. operates where MR is greater than MC.

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