In a private-values auction with rational bidders, we can expect the same outcome from an English auction as from a Vickrey auction.

Question

Quizplus · Accepted Answer

In a private-values auction with rational bidders, both English and Vickrey auctions are expected to have the same outcome, which is the bidder with the highest valuation winning the auction and paying a price equal to the second-highest valuation. Therefore, the statement is true.

In a Private-Values Auction with Rational Bidders, We Can Expect