Mathematics, 26.07.2019 01:20 maryam4241
Suppose that n ≥ 2 bidders are submitting bids to win an item that is worth 100 to each of them. a bid is any number from [0,100]. the highest bid wins the item. if m bidders submit the highest bid then they share the item, so each receives a benefit of 100/m. all bidders—not just the highest bidders—pay a price equal to their bid. letting bi denote bidder i’s bid, bidder i’s payoff then equals (100/m) - bi when i submitted the highest bid and a total of m bidders submitted the highest bid, and equals -bi if i’s bid was not the highest. find all nash equilibria.
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Suppose that n ≥ 2 bidders are submitting bids to win an item that is worth 100 to each of them. a b...
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