Which of the following is true of an English auction with private values?
A) The bid value can exceed the reservation price of the buyer who wins.
B) A typical buyer shades his/her bid below the true private value.
C) A buyer's optimal bid strategy depends on the bidding behavior of other buyers.
D) The final price is approximately equal to the second highest buyer value.
E) Answers c and d are both correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is true of an English auction with private values?
A) The bid value can exceed the reservation price of the buyer who wins.
B) A typical buyer shades his/her bid below the true private value.
C) A buyer's optimal bid strategy depends on the bidding behavior of other buyers.
D) The final price is approximately equal to the second highest buyer value.
E) Answers c and d are both correct.

Which of the Following Is True of an English Auction