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There Are Five Risk-Neutral Bidders,each Having a Private Value That

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There are five risk-neutral bidders,each having a private value that is independently drawn from the range $60 thousand to $120 thousand with all values in between equally likely.The respective expected revenues (in thousand $) from the English [E(PE) ] and sealed-bid [E(PS) ] auctions would be:


A) E(PE) = $100 and E(PS) = $110.
B) E(PE) = E(PS) = $96.
C) E(PE) = E(PS) = $100.
D) E(PE) = $96 and E(PS) = $108.
E) E(PE) = E(PS) = $110.

Correct Answer:

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