In a first-price sealed-bid auction, how many bidders would you predict will bid above their private values?

Question

Quizplus · Accepted Answer

In a first-price sealed-bid auction, bidders have an incentive to bid their true private value because the highest bidder wins and pays their bid. Bidding above their private value would only result in paying more than the item is worth to them. Therefore, it is unlikely that any bidders will bid above their private value.

In a First-Price Sealed-Bid Auction, How Many Bidders Would You