The restaurant Serendipity 3, decided to discontinue theirGolden Opulence Ice-cream Sundae, normally sold for $1000 aserving. For the famous dish's finale, they decided to auction thelast serving to the restaurant's patrons that night. It sold for$2550. 40 patrons made bids and the four highest bids were asfollows:
Assuming that bidders learned auction theory and made their bidsoptimally, which of the following statements is true?
The sundae was sold with a second-price sealed bid auction andthe bidder with the highest valuation won.
The sundae was sold with a second-price sealed bid auction, butthe winner was not necessarily the one with the highestvaluation.
The winner of the auction was a victim of the "winner's curse"because the sundae is worth less than $2550.
If bidder 1's valuation was exactly $2600, we could concludethat the sundae was sold with an English auction.
Both b. and d.
The restaurant Serendipity 3, decided to discontinue their Golden Opulence Ice-cream Sundae, normally sold for $1000 a s
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