You are a bidder in an independent private values auction, and you value the object at $4,000. Each bidder perceives that valuations are uniformly distributed between $1,500 and $9,000. Determine your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:

a. 2 bidders $2,750

b. 10 bidders $3,750

c. 100 bidders $3,975

Explanation:

Calculation to determine what your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:

Using this formula

Optimal bidding = Bidder's own valuation - (Bidder's own valuation - Lowest valuation) ÷ Number of bidders

Let plug in the formula

a) 2 bidders

Optimal bid = $4,000 - [($4,000 - $1,500) ÷ 2]

Optimal bid = $4,000 - ($2,500÷2)

Optimal bid = $4,000 - $1,250

Optimal bid = $2,750

b) 10 bidders

Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 10

Optimal bid = $4,000 - ($2,500÷10)

Optimal bid = $4,000 -$250

Optimal bid =$3,750

c) 100 bidders

Optimal bid = $4,000 - ($4,000 - $1,500) ÷ 100

Optimal bid = $4,000 - ($2,500÷100)

Optimal bid = $4,000-$25

Optimal bid = $3,975

Therefore your optimal bidding strategy in a first-price, sealed-bid auction when the total number of bidders (including you) is:

a. 2 bidders $2,750

b. 10 bidders $3,750

c. 100 bidders $3,975

answer; i believe the answer is 40,600,000;

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.