Q1 Market-clearing Prices Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Position T receives ¤7 = 150 clicks per day and position B receives rB = 50 clicks per day. There are four bidders (B1-B4) with the following dollar values per click: v1 = 8, vz = 6, v3 = 4, v4 = 2. %3D (a) Find the efficient assignment. (b) Find the lowest per click market-clearing prices. (c) Find the highest per click market-clearing prices. (d) Fully specify and draw the complete set of ALL per click market-clearing prices.
Q1 Market-clearing Prices Consider a standard position auction. There are two positions: Top (T) and Bottom (B). Position T receives ¤7 = 150 clicks per day and position B receives rB = 50 clicks per day. There are four bidders (B1-B4) with the following dollar values per click: v1 = 8, vz = 6, v3 = 4, v4 = 2. %3D (a) Find the efficient assignment. (b) Find the lowest per click market-clearing prices. (c) Find the highest per click market-clearing prices. (d) Fully specify and draw the complete set of ALL per click market-clearing prices.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter15A: Auction Design And Information Economics
Section: Chapter Questions
Problem 5E
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