- 4 A Town Is Going To Hire A Firm To Build A New Bridge Suppose N Firms Are Submitting A Bid To Build This Bridge You 1 (65.92 KiB) Viewed 12 times
4.) A town is going to hire a firm to build a new bridge. Suppose n firms are submitting a bid to build this bridge. You
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4.) A town is going to hire a firm to build a new bridge. Suppose n firms are submitting a bid to build this bridge. You
4.) A town is going to hire a firm to build a new bridge. Suppose n firms are submitting a bid to build this bridge. Your cost of providing the service is c. All of the firms will submit sealed bids. The town will look at all of the bids and select the lowest bid but pay to the lowest bidder a price equal to the price bid by the second lowest bidder. So, for example, suppose firms submit bids of 100, 125, and 140. The town will award the contract to build the bridge to the firm that bid 100 and will pay that firm 125. Show that bidding c is a weakly dominant strategy.