Revenue equivalence theorem states that under private values each auction format will generate the same level of revenue for the seller.

Name: Revenue equivalence theorem states that under private values each auction format will generate the same level of revenue for the seller.
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Question

Quizplus · Accepted Answer

The revenue equivalence theorem states that as long as bidders have private values, different auction formats will generate the same level of expected revenue for the seller. Therefore, option A is correct.

Revenue Equivalence Theorem States That Under Private Values Each Auction