An art collector is bidding on a statue that would complete a collection he is trying to assemble. The statue is being sold in a

Question

Deffense [45]

3 years ago

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An art collector is bidding on a statue that would complete a collection he is trying to assemble. The statue is being sold in a

Vickrey (sealed second-price) auction. The collector should place a bid:

Engineering

1 answer:

serious [3.7K] · Answer 1 · 2022-03-18T10:32:34+03:00

Answer: Equal to his willingness to pay for the statue.

Explanation:Vickrey (sealed second-price) auction is a type of seal bidding system named after a Nobel price winner who is a Canadian citizen Vicrey auction is a bidding system where each bidder is required to put his or her bid in a sealed envelope to prevent other bidders from knowing what amount he or she is bidding.

The Collector should bid a price that he or she is willing to pay for the statue,this is ensure that he is will not feel cheated at the end of the entire process. IN THIS BIDDING SYSTEM THE PRICE PAID IS THE SECOND-PRICE BID PRICE AND NOT THE WINNING BID PRICE.