The Optimal Bid in a First-Price,sealed-Bid Auction with Independent Private

Multiple Choice

The optimal bid in a first-price,sealed-bid auction with independent private values is to bid:

A) the true value of the item.
B) more than the true value of the item.
C) less than the true value of the item.
D) the true value of the item and more than the true value of the item, depending upon whether value estimates are affiliated.