Exercise 14.1: Posted Pricing
- Due May 17, 2022 at 3:30pm
- Points 20
- Questions 1
- Available May 17, 2022 at 12pm - May 17, 2022 at 5pm 5 hours
- Time Limit None
Instructions
Setup:
- two buyers
- values v1, v2 ∼ U[0, 1]
- post price p
- sell if any buyer i has vi > p
Question: What is the price where probability of no sale equal to 1/2?
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