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原题(IM,HV,P318):Suppose that there are only two bidders with values of $8 and $10 for an item with a bid increment of $1.what should the reservation price be in a profit-maximizing English auction?
答案:Following the analysis in the text,there are four equally likely configurations of bidders:(8,8),(8,10),(10,8),and (10,10). With zero reservation price,the optimal bids will be (8,9,9,10),resulting in expected profit of $9. The only candidate for a reservation price is $10,which yields expected profit of 30/4=$7.50. Hence zero is a profit-maximizing reservation price in this auction.
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