John is a seller in an independent private-values auction environment where bidders are risk neutral.Which auction yields John the greatest expected revenue?

Question

Quizplus · Accepted Answer

In an independent private-values auction environment where bidders are risk neutral, the Revenue Equivalence Theorem applies. This theorem states that all standard auction formats (English, first price, second price) yield the same expected revenue to the seller, assuming bidders bid their true valuations.

John Is a Seller in an Independent Private-Values Auction Environment