There are three firms (Firm 1,2,and 3)in a competitive procurement,each with independently-drawn costs.All costs are in between the range $300,000-$400,000 and are considered equally likely.Here,??????b1= sealed bid amount of firm 1 and c1= firm 1's costs (Both in $ thousand).Then accordingly,firm 1's optimum equilibrium strategy would be:

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In a competitive procurement with uniformly distributed costs, the optimal bidding strategy involves shading the bid below the cost. The formula b1 = (1/3)(400,000) + (2/3)c1 reflects this strategy, where the bid is a weighted average of the upper bound of the cost range and the firm's actual cost.

There Are Three Firms (Firm 1,2,and 3)in a Competitive Procurement,each