Suppose as wtp is 20 and bs is 40. ties are broken by coin, Ask an Expert

Economics

One unit of object is going to be sold via auction. There are two bidders, A and B. Their willingness to pay are known to be either of 10,20,30,40,50 and bids are also restricted to those values. Suppose A's WTP is 20 and B's is 40. Ties are broken by coin flip and assume they are risk neutral.

(1) Consider the first price auction. prepare down the payoff matrix and find all Nash equilibrium

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M966075

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