Which selling mechanism maximizes the sellers expected


Suppose there are n buyers participating in an auction, where the private values V1, V2,...,Vn are independent and for each i ∈ {1, 2,...,n}, vi is uniformly distributed over [0, vi]. Suppose further that v1 2 n. Answer the following questions

(a) Which selling mechanism maximizes the seller's expected revenue?

(b) What is the seller's expected revenue under this mechanism?

(c) What is the probability that buyer n wins the object under this mechanism?

In the last two items, it suffices to write down the appropriate formula, with no need to solve it explicitly.

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Business Management: Which selling mechanism maximizes the sellers expected
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