Find the variance of ei and of eii

Reference no: EM131332845

Denote by E^I the seller's revenue in a sealed-bid first-price auction, and by E^II the seller's revenue in a sealed-bid second-price auction.

Find the variance of E^I and of E^II when there are n buyers, whose private values are independent and uniformly distributed over [0, 1]. Which of the two is the lesser?

Reference no: EM131332845

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