Concerning auctions,what is the definition of a "common-values setting"?
A) bids are submitted using open outcries.
B) bids are submitted simultaneously, and the highest is selected as the winner.
C) bidders value the object the same, but are uncertain as to what that value is.
D) bids are submitted by syndicates of cooperating bidders.

Question

Quizplus · Accepted Answer

In a common-values setting, bidders value the object being auctioned off similarly, but there is uncertainty in terms of the exact value. This is because the value of the object is based on uncertain factors like future market demand or production costs. Therefore, bidders may not be able to accurately predict the true value of the object, leading to uncertainty in the auction outcome.

Concerning Auctions,what Is the Definition of a "Common-Values Setting