Normal form for a second-price sealed-bid auction


There are two bidders. There is complete information that their valuations are z1=$5 and z2=$4. All bids must be multiples of $2. In the case of a tie, the winner is determined by a coin toss. Draw the normal form for a second-price sealed-bid auction. The set of strategies for each player should include $0,$2,$4,and $6. Solve the game (in other words, find the optimal bidding strategy for each player.

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Macroeconomics: Normal form for a second-price sealed-bid auction
Reference No:- TGS069604

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