Is the proposed bidding function nash equilibrium

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Consider the independent private value auction setting that we talked about and solved in class. Assume that there are a total of n bidders (including yourself). The valuations are uniformly distributed [0,1]. Consider a First price auction - highest bidder gets the item and pays their bid, everyone else pays nothing and gets nothing. For each of the following bidding functions answer the following...

a) Assuming that everyone else plays the proposed bidding function, what do you want to do?

b) Is the proposed bidding function a Nash equilibrium?

• b(v) = v

• b(v) = 2v

• b(v) = n−1 n v

Reference no: EM131388914

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