Asked by
Sydney Johns
on Oct 14, 2024
Verified
If a good is sold in a Dutch auction and the bidders bid rationally, the price paid for the good will always be equal to the second-highest willingness to pay of auction participants.
Dutch Auction
A market structure where the price of an item is lowered until it meets a bid, opposite of the traditional auction format where prices ascend.
Second-Highest Willingness
The concept of determining the price or value of an item based on the highest bid that did not win in an auction or competitive bidding process.
- Learn about the multiple types of auctions and their implications for strategy.
- Pinpoint methods to optimize returns for sellers and bidders in auction environments.
Verified Answer
KC
Learning Objectives
- Learn about the multiple types of auctions and their implications for strategy.
- Pinpoint methods to optimize returns for sellers and bidders in auction environments.