The Optimal Strategy for a Risk-Neutral Bidder in a Second-Price,sealed-Bid

Multiple Choice

The optimal strategy for a risk-neutral bidder in a second-price,sealed-bid auction with independent private values is to bid:

A) slightly less than his or her valuation.
B) slightly higher than his or her valuation.
C) his or her true valuation.
D) None of the preceding statements is correct.