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2751脑筋急转弯中等derivationmedium

Entry Decision Before a Second-Price Auction

题目

A bidder with private value v∈[0,1]v \in [0,1] considers entering a second-price auction against one rival who is known to enter. Values are i.i.d. Uniform(0,1)\mathrm{Uniform}(0,1), and entering costs a fixed fee c=0.08c=0.08. If bidding is truthful after entry, for which values vv should the bidder enter?

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