An item is up for auction player 1 values the item at 3, Ask an Expert

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An item is up for auction. Player 1 values the item at 3 while player 2 values the item at 5. Each player can bid either 0,1, or 2. If player i bids more than player j then i wins the good and pays his bid, while the loser does not pay. If both players bid the same amount then a fair coin is tossed to determine who the winner is, and the winner gets the good and pays his bid while the loser pays nothing.

Consider player 1. Which, if any, of his strategies are strictly dominated?

Now consider player 2. Which, if any, of his strategies are strictly dominated?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91520722

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