A private auction is an auction in which
A) individuals know their own value of the good and everyone else's valuation, too.
B) individuals have their own valuation of the good but don't know everyone else's.
C) many auctions are auctioned off at the same time.
D) only one good is auctioned off.

Question

Quizplus · Accepted Answer

In a private auction, each individual has their own valuation of the good being auctioned off, but they do not know the valuations of the other bidders. Therefore, option B is the best choice. Option A describes a common value auction, option C describes a multiunit auction, and option D describes a single-item auction.

A Private Auction Is an Auction in Which