Question 1

​In a sealed-bid first price auction,if you notice that your competition is stronger,you should

Accepted Answer

A) ​Shade your bid more 
B) Shade your bid less 
C) Bid more aggressively 
D) ​Both B&C 
A) ​Shade your bid more 
B) Shade your bid less 
C) Bid more aggressively 
D) ​Both B&C

Question 2

​If the bidders at a second-price auction have true values of $78,$72,$66,and $65,the item will sell for

Accepted Answer

A) ​$78 
B) just under $78 
C) $72 
D) ​just over $72 
A) ​$78 
B) just under $78 
C) $72 
D) ​just over $72

Question 3

​This factor contributes to the winner's curse

Accepted Answer

A) ​your estimate of the value of the object was not the most optimistic 
B) your bid was not the highest 
C) there were many other bidders that  you beat out 
D) ​you shaded your bid too much 
A) ​your estimate of the value of the object was not the most optimistic 
B) your bid was not the highest 
C) there were many other bidders that  you beat out 
D) ​you shaded your bid too much

Question 4

​In common value auctions

Accepted Answer

A) ​Bidders do not know the value of the object being sold 
B) Each bidder makes the same estimate of the value of the good 
C) All bidders know the estimates of the others 
D) ​The true value of the item differs across bidders 
A) ​Bidders do not know the value of the object being sold 
B) Each bidder makes the same estimate of the value of the good 
C) All bidders know the estimates of the others 
D) ​The true value of the item differs across bidders

Question 5

​With which choice are you more likely to avoid Bid-rigging cartels?

Accepted Answer

A) ​The winning bids are announced 
B) The winning bids are not announced 
C) Winning bids are announced right after the auction 
D) ​Both A&C 
A) ​The winning bids are announced 
B) The winning bids are not announced 
C) Winning bids are announced right after the auction 
D) ​Both A&C

Question 6

​With which choice are you more likely to avoid Bid-rigging cartels?

Accepted Answer

A) ​Holding English auctions 
B) Holding sealed-bid auctions 
C) Holding oral auctions 
D) ​All of the above 
A) ​Holding English auctions 
B) Holding sealed-bid auctions 
C) Holding oral auctions 
D) ​All of the above

Question 7

Anna's Antiques expects to get two bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If Anna holds an auction between the two bidders,and both have high values,she would earn ___ from the auction.

Accepted Answer

A) ​Just above $100 
B) $100 
C) Just above $70 
D) ​$70 
A) ​Just above $100 
B) $100 
C) Just above $70 
D) ​$70

Question 8

​In common value auctions

Accepted Answer

A) ​Every bidder know the value of the object being sold 
B) Each bidder makes their own estimate of the value of the good 
C) All bidders know the estimates of the others 
D) ​The true value of the item differs across bidders 
A) ​Every bidder know the value of the object being sold 
B) Each bidder makes their own estimate of the value of the good 
C) All bidders know the estimates of the others 
D) ​The true value of the item differs across bidders

Question 9

​An English auction is

Accepted Answer

A) ​A sealed auction 
B) An oral auction 
C) An auction where bidders submit decreasing bids 
D) ​All of the above 
A) ​A sealed auction 
B) An oral auction 
C) An auction where bidders submit decreasing bids 
D) ​All of the above

Question 10

​_______losing bidders lead to _____winning bids

Accepted Answer

A) ​Stronger;raise 
B) Weaker;reduce 
C) Stronger;raise 
D) ​None of the above 
A) ​Stronger;raise 
B) Weaker;reduce 
C) Stronger;raise 
D) ​None of the above

Question 11

​In a common-value auction

Accepted Answer

A) ​Every bidder knows the exact value of the item being auctioned 
B) Each bidder knows everyone else's value of the item 
C) The value is the same for all the bidders 
D) ​All of the above 
A) ​Every bidder knows the exact value of the item being auctioned 
B) Each bidder knows everyone else's value of the item 
C) The value is the same for all the bidders 
D) ​All of the above

Question 12

​Bid-rigging is more likely when

Accepted Answer

A) ​auctions are for larger amounts 
B) auctions are infrequent 
C) auctions are oral 
D) ​auctions are sealed-bid 
A) ​auctions are for larger amounts 
B) auctions are infrequent 
C) auctions are oral 
D) ​auctions are sealed-bid

Question 13

​The optimal strategy in a Vickery auction is to

Accepted Answer

A) ​Bid aggressively 
B) Bid above your value since you would be paying the second highest price 
C) Bid exactly your value 
D) ​Bid below your value 
A) ​Bid aggressively 
B) Bid above your value since you would be paying the second highest price 
C) Bid exactly your value 
D) ​Bid below your value

Question 14

Anna's Antiques expects to get three bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If three bidders show up at the auction and two of the bidders are low value,what would the winning price be?

Accepted Answer

A) ​Just above $100 
B) $100 
C) Just above $70 
D) ​$70 
A) ​Just above $100 
B) $100 
C) Just above $70 
D) ​$70

Question 15

​Expected Oral Auction Price with Four Bidders
At an oral auction for a lamp,half of all bidders have a value of $50 and half have a value of $70.What is the expected winning bid if there are four bidders?

Accepted Answer

With four bidders,there are fo

Question 16

​First-price auctions have all the following properties EXCEPT

Accepted Answer

A) ​Highest bid wins 
B) Highest bidder pays the second highest bid 
C) The item is won by the highest bidder 
D) ​The price is set to the highest bid 
A) ​Highest bid wins 
B) Highest bidder pays the second highest bid 
C) The item is won by the highest bidder 
D) ​The price is set to the highest bid

Question 17

​Vickery auctions are

Accepted Answer

A) ​Oral auctions 
B) Second price sealed bid auctions 
C) English auctions 
D) ​None of the above 
A) ​Oral auctions 
B) Second price sealed bid auctions 
C) English auctions 
D) ​None of the above

Question 18

Anna's Antiques expects to get two bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If Anna instead holds an oral auction between the two bidders and one bidder of each type shows up,she earn ___ from the auction.

Accepted Answer

A) ​Just above $100 
B) $100 
C) Just above $70 
D) ​$70 
A) ​Just above $100 
B) $100 
C) Just above $70 
D) ​$70

Question 19

​To attract more bidders,and more aggressive bidders,to your common-value auction

Accepted Answer

A) ​withhold relevant information about the value of the object 
B) allow bidders to know how others are bidding 
C) do not allow potential bidders to examine the object too closely 
D) ​do not hold oral auctions 
A) ​withhold relevant information about the value of the object 
B) allow bidders to know how others are bidding 
C) do not allow potential bidders to examine the object too closely 
D) ​do not hold oral auctions

Question 20

​Economists love auctions because

Accepted Answer

A) ​They maximize consumer surplus 
B) They create efficiency by allotting the item to the highest-value bidder 
C) They create efficiency by allotting the item to the lowest value bidder 
D) ​All of the above 
A) ​They maximize consumer surplus 
B) They create efficiency by allotting the item to the highest-value bidder 
C) They create efficiency by allotting the item to the lowest value bidder 
D) ​All of the above

In a sealed-bid first price auction,if you notice that your competition is stronger,you should

If the bidders at a second-price auction have true values of $78,$72,$66,and $65,the item will sell for

This factor contributes to the winner's curse

In common value auctions

With which choice are you more likely to avoid Bid-rigging cartels?

With which choice are you more likely to avoid Bid-rigging cartels?

Anna's Antiques expects to get two bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If Anna holds an auction between the two bidders,and both have high values,she would earn ___ from the auction.

In common value auctions

An English auction is

___losing bidders lead to _winning bids

In a common-value auction

Bid-rigging is more likely when

The optimal strategy in a Vickery auction is to

Anna's Antiques expects to get three bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If three bidders show up at the auction and two of the bidders are low value,what would the winning price be?

Expected Oral Auction Price with Four Bidders At an oral auction for a lamp,half of all bidders have a value of $50 and half have a value of $70.What is the expected winning bid if there are four bidders?

First-price auctions have all the following properties EXCEPT

Vickery auctions are

To attract more bidders,and more aggressive bidders,to your common-value auction

Economists love auctions because

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Exam 16: Auctions

​In a sealed-bid first price auction,if you notice that your competition is stronger,you should

​If the bidders at a second-price auction have true values of $78,$72,$66,and $65,the item will sell for

​This factor contributes to the winner's curse

​In common value auctions

​With which choice are you more likely to avoid Bid-rigging cartels?

​With which choice are you more likely to avoid Bid-rigging cartels?

Anna's Antiques expects to get two bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If Anna holds an auction between the two bidders,and both have high values,she would earn ___ from the auction.

​In common value auctions

​An English auction is

​_______losing bidders lead to _____winning bids

​In a common-value auction

​Bid-rigging is more likely when

​The optimal strategy in a Vickery auction is to

Anna's Antiques expects to get three bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If three bidders show up at the auction and two of the bidders are low value,what would the winning price be?

​Expected Oral Auction Price with Four Bidders At an oral auction for a lamp,half of all bidders have a value of $50 and half have a value of $70.What is the expected winning bid if there are four bidders?

​First-price auctions have all the following properties EXCEPT

​Vickery auctions are

​To attract more bidders,and more aggressive bidders,to your common-value auction

​Economists love auctions because

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

In a sealed-bid first price auction,if you notice that your competition is stronger,you should

If the bidders at a second-price auction have true values of $78,$72,$66,and $65,the item will sell for

This factor contributes to the winner's curse

In common value auctions

With which choice are you more likely to avoid Bid-rigging cartels?

With which choice are you more likely to avoid Bid-rigging cartels?

In common value auctions

An English auction is

___losing bidders lead to _winning bids

In a common-value auction

Bid-rigging is more likely when

The optimal strategy in a Vickery auction is to

Expected Oral Auction Price with Four Bidders At an oral auction for a lamp,half of all bidders have a value of $50 and half have a value of $70.What is the expected winning bid if there are four bidders?

First-price auctions have all the following properties EXCEPT

Vickery auctions are

To attract more bidders,and more aggressive bidders,to your common-value auction

Economists love auctions because