Vickrey Auction Strategy - Quant Trader Interview Question
Difficulty: Medium
Category: Game Theory & Logic
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Topics: game-theory, auction, dominant-strategy, vickrey-auction
Problem Description
In a second-price sealed-bid auction (Vickrey auction), you are bidding on a rare painting. You value the painting at 100 dollars. Other bidders are participating, but you do not know their valuations. What bidding strategy maximizes your expected payoff?
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