Consider 45 risk-neutral bidders who are participating in a second-price,sealed-bid auction.It is commonly known that bidders have independent private values.Based on this information,we know the optimal bidding strategy for each bidder is to:

Question

Quizplus · Accepted Answer

In a second-price auction with independent private values, the optimal bidding strategy for a risk-neutral bidder is to bid their own true valuation of the item. This ensures that they pay the true value of the item without overpaying or losing the item to someone else who bids higher. Therefore, choice A is the best option.

Consider 45 Risk-Neutral Bidders Who Are Participating in a Second-Price,sealed-Bid