Asked by Melissa Brown on Jun 11, 2024



Anna's Antiques expects to get three bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If three bidders show up at the auction and all of them are high-value bidders,what would the winning bid be?

A) ​Just above $100
B) $100
C) Just above $70
D) ​$70

High-value Bidders

Participants in an auction or competitive bidding process who are willing to offer significantly higher prices for assets or goods compared to average bidders.

Winning Bid

The highest offer made in an auction that is accepted by the seller, resulting in a sale.

Oral Auction

A public sale where goods or services are sold to the highest bidder through verbal bids.

  • Compute the anticipated selling price in auctions by analyzing bidder behavior and the nature of the auction.
  • Examine the effects of discrepancies in bidder valuations on auction outcomes.

Verified Answer

Lashanda Barnes

Jun 11, 2024

Final Answer :
Explanation :
Since all three bidders are high-value bidders, the highest bid that can be made will be $100. None of the bidders will bid less than the maximum value they are willing to pay. Therefore, the winning bid will be $100.