In a perfect information auction:
A) All bidders private valuations are common knowledge.
B) Only the highest bidder's private valuation is common knowledge.
C) Only the lowest bidder's private valuation is common knowledge.
D) None of the bidders' private valuations are common knowledge, although the reservation price and the rules of the auction is known to each of the auction participants.
E) None of the above.

Question

Quizplus · Accepted Answer

In a perfect information auction, all bidders' private valuations are common knowledge, meaning each bidder knows not only their own valuation of the item but also the valuations of all other bidders. This transparency ensures that all participants can make fully informed bidding decisions.

In a Perfect Information Auction