English auction with a reserve price

Assignment Help Business Management
Reference no: EM131447595

A seller knows that there are two bidders for the object he is selling. He believes that with probability 1/2, one has a buyer value of $10 and the other has a buyer value of $15 and, with probability 1/2, one has a buyer value of $7 and the other has a buyer value of $24. He knows that bidders will want to buy the object so long as they can get it for their buyer value or less. He sells it in an English auction with a reserve price which he must set before the auction starts. To maximize his expected profits, he should set the reserve price at $_____________

Reference no: EM131447595

Questions Cloud

Briefly explain the extent of the research : If you're giving a presentation in a subject area that you've researched thoroughly but in which you don't have any handson experience (suppose your topic is coordinating a major facility relocation or hiring a tax attorney, for instance), which o..
How muliticulturalism and diversity affect benefits design : Cultural differences in other countries affecting benefits design. Values and morality affecting design of benefit packages. How muliticulturalism and diversity affect benefits design. Government acts and laws enacted to facilitate benfits in the wor..
Winter time adventures is going to pay annual dividend : Winter Time Adventures is going to pay an annual dividend of $2.60 a share on its common stock a year from now. Yesterday, the company paid a dividend of $2.50 a share. The company adheres to a constant rate of growth dividend policy. What will one s..
How do genes impact health and disease : How do genes impact health and disease? (n.d.). Retrieved March 19, 2017, from http://www.genesinlife.org/genes-your-health/how-do-genes-impact-health-and-disease
English auction with a reserve price : He knows that bidders will want to buy the object so long as they can get it for their buyer value or less. He sells it in an English auction with a reserve price which he must set before the auction starts. To maximize his expected profits, he sh..
Were there laws already in place to protect either side : Were there laws already in place to protect either side? Explain. How long did it take for something to be resolved? What was the result?
Plummeting consumer and business confidence : During the global financial crisis, a combination of bank deleveraging and plummeting consumer and business confidence warranted an aggressive monetary easing such that short term interest rates reached the zero lower bound.
Discuss the data that indicate the numbers : Discuss the data that indicate the numbers of African American exonerees in the data presented from the report is significantly different that the percentage of African Americans living in America.
Which of the given would do the best job of holding : Which of the following would do the best job of holding an audience's attention during a presentation on the growing importance of social networking in corporate communication?

Reviews

Write a Review

 

Business Management Questions & Answers

  Concept of leadership as a vocation

The concept of leadership as a "vocation" greatly distinguishes leadership from a job, career, or what one simply does for a living. A vocation can be thought of as one's calling.

  Effective emergency manager to possess

Suggest two professional competencies that you believe are necessary for an effective emergency manager to possess. Detail a specialized training or educational requirement that is necessary for an effective emergency manager to have.

  Compute at sbc dol-dfl and dtl

(a) Compute at SBC's DOL, DFL, and DTL. (b) If sales turn out to be $588,000 rather than $560,000, what will be SBC's EBIT and net income?

  Reputational damage and loss of market share

The significances for companies that are judged as not taking into consideration the expectations as well as needs of stakeholders are varied however may include reputational damage and loss of market share as consumers switch their brand preferen..

  Adding law that makes same sex marriage legal

Many of the states having been adding law that makes same sex marriage legal.Not all businesses in the wedding industry are embracing the idea of assisting gay and lesbian couples in arranging their wedding ceremonies, however.

  Scenario-money creation

The reserve requirement is 20%, and Leroy deposits the $1,000 check he received as a graduation gift in his checking account. The bank does NOT want to hold excess reserves and the public does NOT want to hold any currency. Reference: Ref 34-2

  Managed change and change management

What is the difference between 'managed change' and 'change management'? I need specific definitions and/or examples and I am not understanding the difference.

  Significance of comment in terms of segmenting and targeting

In a recent interview, a brand manager at Procter & Gamble noted,- What is the significance of this comment in terms of segmenting and targeting?

  What was the ratio for justice gibbss decision

What was the ratio for Justice Gibbs's decision of the case in favour of Mr and Mrs Amadio - what three conclusions did the appeal court come to after its examination of the facts - How was it different from the ratio adopted by Justice Gibbs?

  What you might learn from this point of view

demonstrate what you might learn from this point of view, and model how you might respond positively, with the shared of goal of learning and discovering truth (rather than being right).

  Software create a pert chart for a hypothetical project

Using Microsoft Project or other similar software create a PERT Chart for a hypothetical project that involves at least 7 tasks, and two milestones. In your posting, include enough support material to describe the project

  Sustainable competitive advantage is the holy grail

Using all you have learned to date about Harley-Davidson, analyze whether or not Harley-Davidson has a source of sustainable competitive advantage. Defend your answer using examples from your readings, the annual report, and other sources.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd