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A landlord is renting out an apartment and has three prospective tenants The first tenant is willing to pay $1200month the second tenant is willing to pay $3000month and the third tenant

A landlord is renting out an apartment and has three prospective tenants. The first tenant is willing to pay $1200/month, the second tenant is willing to pay $3000/month, and the third tenant is willing to pay $2000/month. Each potential tenant knows the valuations of the other tenants. Of the following methods of renting the apartment, which would generate the greatest revenue?


A sealed first-price auction

A sealed second-price (Vickrey) auction

A fixed price of $1900/month

A fixed price of $2200/month

 

Apr 01 2020 View more View Less

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