In the reality TV show Storage Wars, people bid on the contents of repossessed storage units without being able to evaluate the contents. This is an example of a ________ auction.
A)common value
B)private value
C)Dutch
D)second-price

Question

Quizplus · Accepted Answer

In a common value auction, bidders have imperfect information about the true value of the item being auctioned. In this case, the bidders cannot evaluate the contents of the storage units, and therefore have to rely on imperfect information to determine the value of the contents. Thus, Storage Wars is an example of a common value auction.

In the Reality TV Show Storage Wars, People Bid on the Contents