ECN 200C Midterm: ECN 200C Midterm Version 1 Spring 2017
Document Summary
Answer all questions (total 100 points) i a i b for all i {1,2,3}. Having read about the good properties of: [52 points] a travel agent is auctioning two one-week vacations for the first week of july. The first (call it prize a) is a vacation in hawaii and the second (call it prize b) a vacation in texas. There are three bidders, imaginatively called 1, 2 and 3. All bidders consider prize a more desirable than prize b and none of the bidders is interested in winning both prizes (they find it hard to be in two places at the same time). Let ai be the value of prize a to bidder i and bi the value of prize b to bidder i. For example, if then bidder 2 wins prize a and pays , bidder 1 wins prize b and pays and bidder 3 pays nothing and wins nothing.
