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2760脑筋急转弯中等derivationmedium

General Procurement Bid Function With Four Suppliers

题目

A procurement auction has four risk-neutral suppliers with i.i.d. costs Uniform(0,1)\mathrm{Uniform}(0,1). The lowest bid wins and is paid its own bid. Derive the symmetric equilibrium bid function, and compute the bid of a supplier with cost 0.30.3.

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你的答案

Equilibrium bid function

Bid at cost 0.3