In an Independent Private Values Sealed- Bid Second- Price Auction

Multiple Choice

In an independent private values sealed- bid second- price auction, if a participant bids more than their valuation this_______ _ an inferior strategy because the high bid_______ _.

A) is; can only lower the amount paid
B) is not; cannot affect the amount paid or raise the amount paid
C) is not; can only lower the amount paid
D) is; cannot affect the amount paid or raise the amount paid