Increasing the number of bidders will increase the expected


1. TRUE/FALSE: A first price auction gives more revenue than a second price auction. Briefly explain.

2. TRUE/FALSE: Consider a seller that is trying to get several copies of a good over a week. The seller can either (a) commit from day 1 to a price strategy (how much it will price each day), or (b) it can update the price after each day according to the remaining inventory and the remaining days. In the second case the seller will make more revenue in expectation. Briefly explain.

3. TRUE/FALSE: Increasing the number of bidders will increase the expected revenue in the first price auction.

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