Asked by
Kathleen Cervantes
on Oct 14, 2024
Verified
An antique cabinet is being sold by means of an English auction.There are four bidders, Arabella, Desiree, Gloria, and Flora.These bidders are unacquainted with each other and do not collude.Arabella values the cabinet at $1,100, Desiree values it at $600, Gloria values it at $1,700, and Flora values it at $700.If the bidders bid in their rational self-interest, the cabinet will be sold to
A) Gloria for slightly more than $1,100.
B) either Gloria or Arabella for about $1,100.Which of these two buyers gets it is randomly determined.
C) Arabella for about $1,100.
D) Gloria for about $1,700.
E) either Gloria or Arabella for about $600.Which of these two buyers gets it is randomly determined.
English Auction
A type of auction where bidders publicly submit higher and higher bids, with the highest bidder winning the item.
Rational Self-Interest
The principle that individuals will make decisions that benefit themselves, assuming they have all necessary information and make rational choices.
Values
Fundamental beliefs or standards of an individual or society guiding behavior and decision-making.
- Grasp the essential idea and the implementation mechanism of English auctions.
- Discover who the top bidder is by analyzing their worth assessments in English auctions.
Verified Answer
KG
Learning Objectives
- Grasp the essential idea and the implementation mechanism of English auctions.
- Discover who the top bidder is by analyzing their worth assessments in English auctions.