1) Suppose that A, B and C are the only people interested in an antique table being auctioned by a second-price
sealed-bid auction. Suppose A's value of the painting is $22,000, B's $18,000, and C's is $15,000. The values are private. What is each bidder's optimal bid? Who wins the auction and what price does she pay? What is each bidder's consumer surplus?
A's optimal bid is 22,000 B 's optimal bid is 18,000 C's optimal bid is 15,000 A will... View the full answer