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Someone at a party pulls out a $100 bill and announces that she is going to auction it off, and 20 other people at the party are potential bidders. The owner of the $100 bill puts forth the following

Someone at a party pulls out a $100 bill and announces that she is going to auction it off, and 20 other people at the party are potential bidders. The owner of the $100 bill puts forth the following procedure: All bidders simultaneously submit a written bid. Everyone (not just the highest bidder) pays his bid, and the bidder with the highest bid gets the $100 bill (assuming that the highest bid is more than 0). If m people submit the highest bid, then each receives a 1/m share of the $100. Each person's strategy set is {0, 1, 2, ...,1000}, s bidding can go as high as $1000. If b; denotes the bid of player i, then player i's payoff is {- b; if b; is not the highest bid 1.0 - b; if b; is the highest bid , where m denotes the number of people who submitted the highest bid including player i). Find all Nash equilibria of this game.

Problem 2 (25 points) Someone at a party pulls out a $100 bill and announces that she is going to auction it off, and 20 othe

Jun 10 2021 View more View Less

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