Private Value English Auction
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- A group of bidders participates in an auction
- At any point, you may place a bid higher than the current highest bid
- Auction ends when time runs out: highest bidder wins the item and pays her bid
- Your screen displays:
- the range of possible bidder values for the item;
- your value for the item;
- current bids, sorted from highest to lowest.
- Use the slider to choose a bid amount, then click Bid to submit the bid
- For the winner: Payoff = Value of the item - Final Bid
- For everyone else: Payoff = 0
- Final bid when time runs out = $45
- Final bidder's value for the item = $54
Payoff |
= |
Value |
– |
Final Bid |
$9 |
= |
$54 |
– |
$45 |