You are an art dealer bidding in a sealed bid auction for a gold statue. You have a client who you believe would be prepared to pay $100,000 for the statue. It is a large statue and the amount of gold alone would be worth $60,000. You know that there are nine other art dealers bidding for the statue. What is your bidding strategy if it is a first price auction, and what would your bidding strategy be in a second price auction?
Make sure you fully explain all the assumptions of your analysis and indicate their significance