Problem
Consider the following situation: There are N > 2 players competing for a chance to win benefits from the government of R. The rent is given to the highest bidder. The second-highest bidder gets nothing but must also spend the amount he bids. What is the likely outcome of such a situation? Where will the process stop? Is it possible that the first- and second-highest bidder could together bid more than the value of the rent? Could each of them spend more than the value of the rent? Why or why not?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.