If Tom is participating in an English auction,he should ________.
A) bid up to his maximum willingness to pay
B) bid above his maximum willingness to pay
C) bid below his value for the good being auctioned
D) pay a fee to place a bid

Question

Quizplus · Accepted Answer

In an English auction, participants are expected to bid up to their maximum willingness to pay. This means that they should place bids up to the highest amount they are willing to pay for the item being auctioned. Bidding above their maximum willingness to pay would not be beneficial as they may end up paying more than what the item is worth to them. Bidding below their value for the item may result in losing the auction to someone who values the item more than them. There is no fee to place a bid in an English auction.

If Tom Is Participating in an English Auction,he Should ________