Question 1

In a perfect information auction:

Accepted Answer

A)  All bidders private valuations are common knowledge. 
B)  Only the highest bidder's private valuation is common knowledge. 
C)  Only the lowest bidder's private valuation is common knowledge. 
D)  None of the bidders' private valuations are common knowledge, although the reservation price and the rules of the auction is known to each of the auction participants. 
E)  None of the above. 
A)  All bidders private valuations are common knowledge. 
B)  Only the highest bidder's private valuation is common knowledge. 
C)  Only the lowest bidder's private valuation is common knowledge. 
D)  None of the bidders' private valuations are common knowledge, although the reservation price and the rules of the auction is known to each of the auction participants. 
E)  None of the above.

Question 2

Suppose that Hans and Frans are bidding for an 1878CC Morgan silver dollar. Hans knows that Frans is willing to pay $1,150. Frans knows that Hans is willing to pay $975. Suppose that the seller's reservation price is $800 and bids are in $100 increments. Hans' dominant strategy in a sealed-bid, second-price auction is to submit a bid of:

Accepted Answer

A)  $800. 
B)  $900. 
C)  $1,000. 
D)  $1,100. 
E)  None of the above. 
A)  $800. 
B)  $900. 
C)  $1,000. 
D)  $1,100. 
E)  None of the above.

Question 3

Auctions involve:

Accepted Answer

A)  Multiple bidders and multiple sellers. 
B)  Multiple bidders and a single seller. 
C)  A single bidder and multiple sellers. 
D)  A single bidder and a single seller. 
E)  Answers b and c are correct. 
A)  Multiple bidders and multiple sellers. 
B)  Multiple bidders and a single seller. 
C)  A single bidder and multiple sellers. 
D)  A single bidder and a single seller. 
E)  Answers b and c are correct.

Question 4

The U.S. Government has used auctions to:

Accepted Answer

A)  Award construction contracts. 
B)  Award mineral extraction rights on public lands. 
C)  Allocate radio frequencies. 
D)  Sell U.S. Treasury securities. 
E)  All of the above. 
A)  Award construction contracts. 
B)  Award mineral extraction rights on public lands. 
C)  Allocate radio frequencies. 
D)  Sell U.S. Treasury securities. 
E)  All of the above.

In a perfect information auction:

Auctions involve:

The U.S. Government has used auctions to:

Introduction to Game Theory

Noncooperative, One-Time, Static Games

Focal-Point and Evolutionary Equilibria

Infinitely-Repeated, Static Games

Finitely-Repeated, Static Games

Mixing Pure Strategies

Static Games With Continuous Strategies

Imperfect Competition

Perfect Competition and Monopoly

Strategic Trade Policy

Dynamic Games With Complete

Bargaining

Pure Strategies With Uncertain Payoffs

Torts and Contracts

Dynamic Games With Incomplete Information

Filters

Exam 15: Auctions

In a perfect information auction:

Auctions involve:

The U.S. Government has used auctions to:

Introduction to Game Theory

Noncooperative, One-Time, Static Games

Focal-Point and Evolutionary Equilibria

Infinitely-Repeated, Static Games

Finitely-Repeated, Static Games

Mixing Pure Strategies

Static Games With Continuous Strategies

Imperfect Competition

Perfect Competition and Monopoly

Strategic Trade Policy

Dynamic Games With Complete

Bargaining

Pure Strategies With Uncertain Payoffs

Torts and Contracts

Dynamic Games With Incomplete Information

Filters