Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

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You are developing a bidding strategy for an ascending-price sealed-bid auction of a crude oil field worth between $1 million and $51 million to the seller. Because your extraction costs are lower, your value is 20 percent greater than the seller's value. The seller faces transaction costs of conducting the sale and therefore will not accept an offer unless it exceeds her personal value. How much should you bid