Scenario: Alice is participating in a Dutch auction for a painting. There are five other bidders, and Alice values the painting at $30,000.
-Refer to the scenario above.If Alice wins the auction,the seller earns an average revenue of ________.

Question

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In a Dutch auction, the price starts high and decreases until a bidder accepts the current price. Alice values the painting at $30,000, but she will aim to pay less than her valuation. The average revenue the seller earns is typically less than the highest valuation, often around the second-highest valuation, which is likely to be less than $30,000.

Scenario: Alice Is Participating in a Dutch Auction for a Painting