Repeat given Exercise when the auction method conducted is a sealed-bid firstprice auction with entry fee λ.
Exercise
Consider a sealed-bid second-price auction with entry fee λ and n buyers, whose private values are independent and uniformly distributed over [0,1].
(a) Find a symmetric equilibrium.
(b) What is the seller's expected revenue?
(c) Which entry fee maximizes the seller's expected revenue?
(d) What value does the optimal entry fee approach as the number of buyers increases to ∞?