Suppose you participate in a second-price sealed bid auction with 2 other participants. You and your rivals all expect that the symmetric Bayes Nash equilibrium is played. Your rivals have valuations randomly drawn from the set [100,300]. Their valuations are private. Your value is 150. What is the chance you get the object? Report your answer to 2 decimal places.
Added by M C.
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In a second-price sealed bid auction, the highest bidder wins, but the price paid is the second-highest bid. Participants bid their true valuations in a symmetric Bayes Nash equilibrium. Show more…
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