Scenario: Four friends-Tom, Bill, Jeff, and Roger-are participating in an English auction. Tom values the good being auctioned at $500, Bill values it at $210, Jeff values it at $350, and Roger values it at $625.
-Refer to the scenario above.If these four friends are the only bidders and each bidder uses his optimal strategy,the owner of the good will earn an expected revenue of ________.
A) $210
B) $350
C) $500
D) $625

Question

Quizplus · Accepted Answer

In an English auction, the item is sold to the highest bidder at a price equal to the second-highest bid. Roger, with the highest valuation of $625, will win the auction, but he will pay the second-highest valuation, which is Jeff's $350.

Scenario: Four Friends-Tom, Bill, Jeff, and Roger-Are Participating in an English