4. Consider a 4-bidder auction model. The auction is second price sealed bid. How- ever, now, the bidders know each-others valuation. (Complete information model, cov- ered in class). Assume that ₁ > >> 4. Find a Nash Equilibrium of the 2nd price sealed-bid auction where bidder 4 obtains the object.

4. Consider a 4-bidder auction model. The auction is second price sealed bid. How- ever, now, the bidders know each-others valuation. (Complete information model, cov- ered in class). Assume that ₁ > >> 4. Find a Nash Equilibrium of the 2nd price sealed-bid auction where bidder 4 obtains the object.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.9P

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Consider a 4-bidder auction model. The auction is second price sealed bid. However, now, the bidders know each-others valuation. Assume that v1 > v2 > v3 > v4. Find a Nash Equilibrium of the 2nd price sealed-bid auction where bidder 4 obtains the object.
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