(See Solution)            The IRS has organized a sealed bid auction to sell an office building whose owners have failed to pay back taxes  1) You


The IRS has organized a sealed bid auction to sell an office building whose owners have failed to pay back taxes

 1) You estimate the value of the building at $2.9 million. You believe competitors will be in the range of 2 to 3 million dollars with all values having equal probability. What bid would provide the greatest expected profit against one bidder? What bid would you choose if you had two competitors. What would your expected value be?

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