3. (5 points) Explain why a first price auction is likely to perform better than a second price auction when bidders are experienced but risk-averse.
This is because it comes under descending bid . In this type of bid the seller is lowering the price and the person has to accept the final bid and pays the current price.
3. (5 points) Explain why a first price auction is likely to perform better than a...
2. Second Price Auction& Google Search Auction (18 points) A. (11 points) There are two bidders, bidder 1 and bidder 2, bidding for one object. Their valuations of the object (vi, v2) are simultaneously submit their bidding prices (b, by The one with the higher price wins the auction and pays the loser's price, the second highest price. (In answering the questions below, no detailed explanations are needed and you just need to directly give the conclusion.) independent. Each one...
Three (3) bidders participate in a first price, sealed bid auction satisfying all the assumptions of the independent private values model. Each knows his own value v ∈ [0, 1], but does not know anyone else's, and so must form beliefs. Suppose everyone thinks it is more likely a rival's value is high than low. Specifically, each player believes any other player's value is distributed on [0, 1] according to the cumulative distribution function F(v) = v3, and this is...
Consider a first price auction for selling one item. There are n bidders. Each bidder i has a valuation vi for the item, which is privately known and drawn independently from a uniform distribution of interval [0,50]. Each bidder i bids a non-negative real number bi. The bidder who bids the highest number wins and if more than one bidder bid the highest, the winner is chosen uniformly at random. The winner gets the item and pays her bid. All...
Helpme solving Bayes-Nash equilibrium problem 5. Consider a first price auction (with independent private values) where there are two bidders, A and B. There are two possible types of bidders, a bidder with a 60 with probability 0.5 and 100 with probability 0.5. Bids can come only in increments of 10. Consider the following strategy profile: "Each bidder bids 50 if the valuation is 60 and bids 70 if the valuation is 100." Is this strategy pair a Bayes-Nash equilibrium?...
Explain why a player in a sealed-bid, second-price auction would never submit a bid thatexceeds his or her true value of the object being sold. (Hint: What if all players submittedbids greater than their valuations of the object?)
Second precision rectifier: Research why this is better than the first configuration.
usion (24 points) Two firms are playing a repeated Bertrand game infinitely, each with the same marginal cost 100. The market demand function is P-400-Q. The firm who charges the lower price wins the whole market. When both firms charge the same price, each gets 1/2 of the total market. I. Coll A. (6 points) What price will they choose in the stage (only one period) Nash equilibrium? What price will they choose if in the stage game (only one...
4. (5 points) Why is the first ionization energy for cesium lower than xenon? Explain your reasoning. 25 He first ionization energy (eV) Rn Rb Cs 0 10 20 30 40 50 60 70 80 90 atomic number
Question 4 (Final 2011: 10 points) (a) (3 points) The spot price for gold is $650. The risk-free interest rate is 5%. What is the futures price for gold for a six-month contract? (b) (5 points) The six-month futures price in the market is $682.50. Is there an arbitrage opportunity here? Why? If so how would you exploit it? Explain. (c) (2 points) Consider the formula on the formula sheet: What does ‘c’ represent? What is ‘c’ likely to be for gold? What...
Do education programs for preschool childrent that follow the Montessori method perform better than other programs? A study compared 5-year-old children in Milwaukee, Wisconsin, who had been enrolled in preschool programds from the age of 3. A. Explain why comparing children whose parents chose a Montessori school with children of other parent would not show whether Montssori schools perform better than other programs. (In fact, all the children in the study applied to the Montessori school. The school district assigned...