An antique cabinet is being sold by means of an English auction.There are four bidders, Kitty, Gloria, Judy, and Cindy.These bidders are unacquainted with each other and do not collude.Kitty values the cabinet at $800, Gloria values it at $500, Judy values it at $1,700, and Cindy values it at $700.If the bidders bid in their rational self-interest, the cabinet will be sold to

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In an English auction, the item is sold to the highest bidder. Each bidder will bid up to their perceived value of the item, so the bidder with the highest perceived value will win the auction. In this case, Judy has the highest perceived value of $1,700, so she will bid up to that amount. However, since Cindy and Gloria have lower perceived values, they will drop out before Judy reaches her maximum bid. This means that Judy will win the auction for slightly more than Kitty's perceived value of $800, which is the second-highest perceived value.

An Antique Cabinet Is Being Sold by Means of an English