Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

Exercise 12

In Appendix 15A, we have assumed bidder's valuations are independent, but suppose they are affiliated. That is, suppose on eBay you wish to affiliate with those who think Beatles albums are valuable, and that affects your own personal valuation. How will this change from independent to affiliated valuations affect bidding strategy on eBay Do you observe such behavior on the site