Find a nash equilibrium, Applied Statistics

2 bidders have identical valuations of an object for sale. The value of the object is either 0; 50 or 100, with equal probabilities. The object is allocated to one of the bidders in a second price (Vickrey) auction: the highest bidder gets the object and pays the second highest bid.

In case of a tie the object goes to bidder 1. Bidder 1 gets the signal 1 where T1(0) = l; T1(50) = m and T1(100) = h. Bidder 2 gets the signal T2 where T2(0) = L and T2(50) = T2(100) = H.

(i) Find a Nash equilibrium of this auction.

(ii) What is the seller's revenue? Could the seller get a higher revenue if bidder 2 had better information? Explain.

Posted Date: 3/9/2013 12:32:07 AM | Location : United States







Related Discussions:- Find a nash equilibrium, Assignment Help, Ask Question on Find a nash equilibrium, Get Answer, Expert's Help, Find a nash equilibrium Discussions

Write discussion on Find a nash equilibrium
Your posts are moderated
Related Questions
Estimate a linear probability model: Consider the multiple regression model: y = β 0 +β 1 x 1 +.....+β k x k +u Suppose that assumptions MLR.1-MLR4 hold, but not assump

Scenario : Mrs dick's year 1s and 2s carried out a level-one science investigation to explain the changes in a particular plant over a period of time.  As part of the investigation

Each section of the SAT test is supposed to be distributed normally with a mean of 500 and a standard deviation of 100. Suppose 5 students in a class took the SAT math test. They r

Lifts usually have signs indicating their maximum capacity. Consider a sign in a lift that reads "maximum capacity 1400kg or 20 persons". Suppose that the weights of lift-users are

According to a recent study, when shopping online for luxury goods, men spend a mean of $2,401, whereas women spend a mean of $1,527. Suppose that the study was based on a sample o

Statistics Can Lead to Errors The use of statistics can often lead to wrong conclusions or wrong estimates. For example, we may want to find out the average savings by i

What would be the cutoff score to indicate a score that is in the top 15% of the scores on a test with a mean of 100 and a standard deviation of 15? This question has multiple p

 Each question, by default, should be solved INDIVIDUALLY, unless marked as \collaborative". Questions marked as \collaborative" implies that for those questions you are encourage


Stratified Random Sampling: This method of sampling is used when the population is comprised of natural subdivision of units, The method consist in classifying the population u