Question

2. Savannah, Sara, and Susan have lived in the same apartment for years. Savannah is getting married and decides to give her bedroom furniture and washing machine away. Sara and Susan cannot decide who should get which item so they submit the following bids: Bedroom Furniture Washing Machine Sara $300 $100 Susan $250 $120 Find the final allocation using sealed bids.

Answer 1

From the sealed bids, the highest bidder for each of the items will be allocated the items that Savannah to give away.

Sara has quoted $300 for the bed-room furniture which is $50 higher than Susan's bid of $250. Therefore Sara should be allocated the bed-room furniture.

Susan's bid of $120 on the washing machine is $20 higher than Sara's $100 bid. As such Susan will be allocated the washing machine.