Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 3

You are a bidder in an independent private values auction, and you value the object at $4,000. Each bidder perceives that valuations are uniformly distributed between $1,500 and $9,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:
a. 2.
b. 10.
c. 100.