Business, 05.05.2020 04:38 khikhi1705

You are one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives that all other bidders’ valuations for the item are evenly distributed between $60,000 and $100,000. For each of the following auction types, determine your optimal bidding strategy if you value the item at $82,000.

a. First-price, sealed-bid auction. Bid $82,000. Bid $60,000. Bid $77,600. Bid $100,000.
b. Dutch auction. Let the auctioneer continue to lower the price until it reaches $100,000, and then yell "Mine!". Let the auctioneer continue to lower the price until it reaches $60,000, and then yell "Mine!". Let the auctioneer continue to lower the price until it reaches $82,000, and then yell "Mine!". Let the auctioneer continue to lower the price until it reaches $77,600, and then yell "Mine!".
c. Second-price, sealed-bid auction. Bid $77,600. Bid $82,000. Bid $60,000. Bid $100,000.
d. English auction. Remain active until the price exceeds $100,000, and then drop out. Remain active until the price exceeds $60,000, and then drop out. Remain active until the price exceeds $82,000, and then drop out. Remain active until the price exceeds $77,600, and then drop out.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 11:10

Post test question number 9 for entering the job market

Answers: 1

Answer

Business, 23.06.2019 11:10

Danielle puts 8 percent of her paycheck in a 401(k) plan administered by her employer. danielle earns $55,000 per year and is in the 28 percent tax category. what annual tax savings does she get from her contribution? if her employer matches contributions on the first 5% of her salary dollar for dollar and the second 5% 50 cents on the dollar, how much will her employer put into her account this year?

Answers: 2

Answer

Business, 23.06.2019 17:30

Monthly price data for mdltx and ekwax from yahoo finance is contained in the excel spreadsheet for this exercise. there are 37 months of price data for the period from september 2009 to september 2012. (note: these prices already incorporate dividend payments.) the 36 monthly returns for each fund are also provided. calculate average (arithmetic) monthly return and standard deviation for each fund. you can use the excel functions average, stdev to derive these stats. annualize these statistics. use the correl function in excel to derive the correlation coefficient between the two sets of returns. (annual correlation is the same as monthly correlation. hence, no need to annualize this stat.) using the annualized statistics derived in step 1, compute the expected return and standard deviation for portfolios containing from 0% to 100% mdltx (and 100% to 0% ekwax) by 10% increments. graph the resulting portfolios. based on your analysis, is there any potential benefit to diversification across these two funds? explain. of the 11 portfolios you graphed, which are efficient?

Answers: 1

Answer

Business, 23.06.2019 17:50

Unlike the market for shirts at the local department store, the market for securities can experience significant upswings and downswings in values in the same day. program trading allows for thousands of trades to occur simultaneously. to prevent large, sudden drops in the value of securities markets, electronic systems rely on to temporarily close program trading. subprime markers circuit breakers price-points bear markets

Answers: 2

Answer

You know the right answer?

You are one of five risk-neutral bidders participating in an independent private values auction. Eac...

Questions