As a manager holding an auction with correlated or common values, you want buyers to place bids that are_______ their estimated_______ and sellers to place bids that are close to their estimated_______ .

Question

Quizplus · Accepted Answer

In an auction with correlated or common values, buyers estimate the value or worth of the item being auctioned similarly. Therefore, as a manager, you want buyers to place bids that are close to their estimated valuations. On the other hand, sellers estimate their costs similarly, and so you want sellers to place bids that are close to their estimated costs. Therefore, the best option is to choose "close to; valuations; costs" in choice C.

As a Manager Holding an Auction with Correlated or Common