Asked by
Capri Callis
on Oct 14, 2024
Verified
An antique cabinet is being sold by means of an English auction.There are four bidders, Arabella, Lana, Hester, and Betsy.These bidders are unacquainted with each other and do not collude.Arabella values the cabinet at $1,000, Lana values it at $500, Hester values it at $1,300, and Betsy values it at $800.If the bidders bid in their rational self-interest, the cabinet will be sold to
A) Hester for slightly more than $1,000.
B) Hester for about $1,300.
C) Arabella for about $1,000.
D) either Hester or Arabella for about $1,000.Which of these two buyers gets it is randomly determined.
E) either Hester or Arabella for about $500.Which of these two buyers gets it is randomly determined.
English Auction
A type of auction where bidders publicly announce their successive higher bids until no higher bid is forthcoming, with the highest bidder winning the item.
Rational Self-Interest
The principle that individuals will make decisions that they perceive to be in their best interest, maximizing their utility or benefit.
Values
The importance, worth, or usefulness of something, often influencing individuals' choices and behaviors.
- Master the core concept and the execution method of English auctions.
- Ascertain the contender with the maximum bid by evaluating their estimations in English auctions.
Verified Answer
KC
Learning Objectives
- Master the core concept and the execution method of English auctions.
- Ascertain the contender with the maximum bid by evaluating their estimations in English auctions.