Scenario: Rebecca Is Participating in a Dutch Auction for an Antique

Multiple Choice

Scenario: Rebecca is participating in a Dutch auction for an antique necklace. The total number of bidders in this auction is ten. Rebecca values the necklace at $45,000, while all the other bidders value it below $45,000.
-Refer to the scenario above.What is the optimal strategy of each bidder?

A) Each bidder should bid up to his or her maximum willingness to pay for the necklace.
B) Each bidder should bid above his or her maximum willingness to pay for the necklace.
C) Each bidder should bid up to 9/10 of his or her valuation of the necklace.
D) Each bidder should bid up to 4/5 of his or her valuation of the necklace.