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Darya [45]
3 years ago
15

Consider a second-price, sealed-bid auction with a seller who has one unit of the object which he values at s and two buyers 1,

2 who have values of v1 and v2 for the object. The values s, v1, v2 are all independent, private values. Suppose that both buyers know that the seller will submit his own sealed bid of s (and will keep the item if bid s wins), but they do not know the value of s. The buyers know that the seller must submit his bid before seeing the buyer’s bids and they know that the seller will actually run a second price auction with the three bids he has: his own bid and the two buyer’s bids. Each buyer knows his own value but not the other buyer’s value.
Now suppose that the seller opens the bids from the buyers and then submits his own bid after seeing the bids from the two buyers. The seller runs a second price auction with these bids in the sense that the object is awarded to the highests bidder (one of the two buyers or the seller) and that bidder pays the second highest bid. Now is it optimal for the buyers to bid truthfully; that is, should they each bid their true value? Give a brief explanation for your answer.
Business
1 answer:
dybincka [34]3 years ago
5 0

Answer and Explanation:

Given that this is a second price bid auction whereby the second highest bid is the price that the highest bidder pays for the item up for auction sale, so that b1>b2 then b1 gets item for the price of b2.

Truthfulness of true value is the dominant strategy here which means each player should aim to be truthful with their bid regarding their true value regardless of what other bidders are bidding. Therefore truthfulness of value is the optimal strategy with the best payoff for bidders

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Answer:

Net Income = $1,250

Explanation:

Benning Co.

Income Statement

For the Month Ended July 31, 2010

Particulars                             $                     $

Revenues                                                6,000 (1)

Expenses:

Wages Expense               2,600 (2)

Supplies Expense            1,000 (3)

Utilities Expense                600

Insurance Expense            400

Depreciation Expense       150

<em>Total expenses                                 </em><u><em>      4,750   </em></u>

Net Income                                            $1,250

<u><em>Note:</em></u>

1. Revenues = 5,500 + 500 (Adjustment 5) = $6,000

Performed services not recorded will add.

2. Wages expense = $2,300 + 300 (Adjustment 3) = $2,600

Accrued wages not paid will add to the wages expense.

3. Supplies Expense = $1,200 - 200 (Adjustment 2) = $1,000

Supplies expense includes supplies on hand will decrease the supplies expense.

3 0
3 years ago
A firm that decides to emphasize those goods with the highest contribution margin per unit may have made an incorrect decision w
solmaris [256]

Answer:

Has capacity constraints in the form of limited resources

Explanation:

When the company has capacity constraints in the form of limited resources they should prioritize those goods with highest <em>contribution margin per unit of the limiting factor</em> instead of goods with the <em>highest contribution margin per unit</em>. This ensures that resources are distributed first to where they are more profitable.

Therefore, A firm that decides to emphasize those goods with the highest contribution margin per unit may have made an incorrect decision when the company has capacity constraints in the form of limited resources.

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Because it helps them finish whatever project they are working and helps them and thats it and plz give me thanks and brainliest if u can

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8 0
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Answer:

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In this case Windsor promises to pay $375 and Gary promises to deliver 20 pounds of cheese.

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