ECN 200C Study Guide - Midterm Guide: Strategic Dominance, Chrysler 200C Ev, Nash Equilibrium
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Answer all questions (total 100 points: [25 points] a seller has m identical units (m 1) of a commodity for sale. There are n bidders (n > m), each wishing to purchase at most one unit. The seller asks each bidder i to submit a sealed bid for one unit of the good, given by $ ib , which can be any non-negative real number. The seller then arranges the bids in decreasing order (from highest to lowest) and then sells the m units to the first m bidders on that list and charges each of them the (m+1)th bid. If there are ties, then the seller favors the bidder(s) with the lower index (e. g. bidder 5 has a lower index than bidder 8). For example, suppose that m = 5, n = 7 and the bids are as follows: b b. And sells 1 unit to each of bidders.
