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    Your company is bidding for a broadband spectrum license. Yo

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    1.Your company is bidding for a broadband spectrum license. You have been asked to submit an optimal bidding strategy. You expect that bidders will have independent private values for the licenses because each bidder presently has a different structure in place. You believe the valuations for these licenses will be between $200 million and $700 million. Your own valuation is $650 million. There is some uncertainty about the auction design that will be used, so you must suggest an optimal bidding strategy for the following auction designs:
    a. Second-price, sealed-bid auction.
    b. English auction.
    c. Dutch auction.

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    Solution Preview

    Your company is bidding for a broadband spectrum license. You have been asked to submit an optimal bidding strategy. You expect that bidders will have independent private values for the licenses because each bidder presently has a different structure in place. You believe the valuations for these licenses will be ...

    Solution Summary

    Your company is bidding for a broadband spectrum license. You have been asked to submit an optimal bidding strategy. You expect that bidders will have independent private values for the licenses because each bidder presently has a different structure in place. You believe the valuations for these licenses will be between $200 million and $700 million. Your own valuation is $650 million. There is some uncertainty about the auction design that will be used, so you must suggest an optimal bidding strategy for the following auction designs:
    a. Second-price, sealed-bid auction.
    b. English auction.
    c. Dutch auction.

    $2.19