Game theory: second price procurement auction?
Auction is for a highway bridge replacement contract, with n bidders. Each bidder’s cheap drugs online cost is private information and unrelated (independent private costs). Bidder i’s bid with a cost of C is written as Bi(Ci). r is defined as the lowest bid among bidder i’s rivals and because it is a second price auction, bidder i, when Bi<r receives a payout of r.
Bidder i has a weakly dominant strategy, but I missed class that day and don’t have the notes to find it. Any help would be great.
