Asked by Johirul islam on Sep 24, 2024
Verified
In a sealed-bid first price auction,if you notice that your competition is stronger,you should
A) Shade your bid more
B) Shade your bid less
C) Bid more aggressively
D) Both B&C
Sealed-Bid
A bidding process where all bids are submitted confidentially and opened at a predetermined time.
Bid Aggressively
Actively and competitively placing higher bids, often to secure an asset or win a contract in auctions or markets.
Competition
The rivalry between businesses or suppliers in the same market, aiming to achieve higher sales, greater market share, or other objectives.
- Investigate the influence of bidder actions and strategies within diverse bidding environments.
- Comprehend the outcomes of competition among participants in auctions.
Verified Answer
NK
Natalie Klaas3 days ago
Final Answer :
D
Explanation :
In a sealed-bid first-price auction, if you notice that your competition is stronger, you should shade your bid less (to increase your chances of winning by bidding closer to your true valuation) and bid more aggressively (to outbid the strong competition). Both strategies aim to improve your chances against stronger competitors.
Learning Objectives
- Investigate the influence of bidder actions and strategies within diverse bidding environments.
- Comprehend the outcomes of competition among participants in auctions.