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Author Topic: Feb 1996 LR #25 (MODIFIED.)  (Read 2461 times)

uwofresh

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Feb 1996 LR #25 (MODIFIED.)
« on: August 31, 2005, 11:31:53 PM »
In one round sealed bid auctions, each prospective buyer submits in strict confidence a single bid, and the sale goes to the highest bidder.  A reserve price- a minimum price below whcih there will be no sale-can be set by the seller as protection against a token bid, which is an unreasonably low bid sometimes made by a bidder who gambles that there will be no other bid.  Paradoxically such protection is most needed when extremely desirable items are auctioned off this way.

Which one of the following, if true about one round sealed bid auctions most helps to explain why generalization characterized above as paradoxical holds?

a.) the reserve price on an extremely desireable item is generally set high enough to yeild a profit for the seller even if the winning bid just matches it.

e.) Prospective buyers tend to believe that, in order to be successful, a bid on an extremely desirable item would have to be so high as not to make economic sense.

E was the right answer, But i'm not sure why.  A seemed pretty reasonabe as well.  Any thoughts?

theo

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Re: Feb 1996 LR #25 (LAST Q, sorry guys.)
« Reply #1 on: August 31, 2005, 11:40:35 PM »
In one round sealed bid auctions, each prospective buyer submits in strict confidence a single bid, and the sale goes to the highest bidder.  A reserve price- a minimum price below whcih there will be no sale-can be set by the seller as protection against a token bid, which is an unreasonably low bid sometimes made by a bidder who gambles that there will be no other bid.  Paradoxically such protection is most needed when extremely desirable items are auctioned off this way.

Which one of the following, if true about one round sealed bid auctions most helps to explain why generalization characterized above as paradoxical holds?

a.) the reserve price on an extremely desireable item is generally set high enough to yeild a profit for the seller even if the winning bid just matches it.

d.) prospective buyers of an extremely desirable item can often guess quite accuractly who at laest some of the other propesctive buyers are.

Why is the right answer right, and more importantly wrong answers wrong??  Thanks!



You might try including the credited answer.
quid leges sine moribus vanae proficiunt?

uwofresh

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Re: Feb 1996 LR #25 (LAST Q, sorry guys.)
« Reply #2 on: August 31, 2005, 11:42:23 PM »
In one round sealed bid auctions, each prospective buyer submits in strict confidence a single bid, and the sale goes to the highest bidder.  A reserve price- a minimum price below whcih there will be no sale-can be set by the seller as protection against a token bid, which is an unreasonably low bid sometimes made by a bidder who gambles that there will be no other bid.  Paradoxically such protection is most needed when extremely desirable items are auctioned off this way.

Which one of the following, if true about one round sealed bid auctions most helps to explain why generalization characterized above as paradoxical holds?

a.) the reserve price on an extremely desireable item is generally set high enough to yeild a profit for the seller even if the winning bid just matches it.

d.) prospective buyers of an extremely desirable item can often guess quite accuractly who at laest some of the other propesctive buyers are.

Why is the right answer right, and more importantly wrong answers wrong??  Thanks!



You might try including the credited answer.

the answer is D Theo.  Can you tell me why it's the right one? and why the other one isn't?

yiplong

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Re: Feb 1996 LR #25 (LAST Q, sorry guys.)
« Reply #3 on: August 31, 2005, 11:44:20 PM »
No it is not D.  the correct answer is E.  I think this problem is on the SuperPrep. 

theo

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Re: Feb 1996 LR #25 (LAST Q, sorry guys.)
« Reply #4 on: August 31, 2005, 11:45:21 PM »
In one round sealed bid auctions, each prospective buyer submits in strict confidence a single bid, and the sale goes to the highest bidder.  A reserve price- a minimum price below whcih there will be no sale-can be set by the seller as protection against a token bid, which is an unreasonably low bid sometimes made by a bidder who gambles that there will be no other bid.  Paradoxically such protection is most needed when extremely desirable items are auctioned off this way.

Which one of the following, if true about one round sealed bid auctions most helps to explain why generalization characterized above as paradoxical holds?

a.) the reserve price on an extremely desireable item is generally set high enough to yeild a profit for the seller even if the winning bid just matches it.

d.) prospective buyers of an extremely desirable item can often guess quite accuractly who at laest some of the other propesctive buyers are.

Why is the right answer right, and more importantly wrong answers wrong??  Thanks!



You might try including the credited answer.

the answer is D Theo.  Can you tell me why it's the right one? and why the other one isn't?


It's E), moron.
quid leges sine moribus vanae proficiunt?

uwofresh

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Re: Feb 1996 LR #25 (LAST Q, sorry guys.)
« Reply #5 on: August 31, 2005, 11:57:07 PM »
In one round sealed bid auctions, each prospective buyer submits in strict confidence a single bid, and the sale goes to the highest bidder.  A reserve price- a minimum price below whcih there will be no sale-can be set by the seller as protection against a token bid, which is an unreasonably low bid sometimes made by a bidder who gambles that there will be no other bid.  Paradoxically such protection is most needed when extremely desirable items are auctioned off this way.

Which one of the following, if true about one round sealed bid auctions most helps to explain why generalization characterized above as paradoxical holds?

a.) the reserve price on an extremely desireable item is generally set high enough to yeild a profit for the seller even if the winning bid just matches it.

d.) prospective buyers of an extremely desirable item can often guess quite accuractly who at laest some of the other propesctive buyers are.

Why is the right answer right, and more importantly wrong answers wrong??  Thanks!



You might try including the credited answer.

the answer is D Theo.  Can you tell me why it's the right one? and why the other one isn't?


It's E), moron.

I just made a mistake.  No need to get so offensive, idiot.

theo

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Re: Feb 1996 LR #25 (LAST Q, sorry guys.)
« Reply #6 on: September 01, 2005, 12:08:27 AM »

You might try including the credited answer.

the answer is D Theo.  Can you tell me why it's the right one? and why the other one isn't?
Quote


It's E), moron.
Quote

I just made a mistake.  No need to get so offensive, idiot.
Quote


I would be an idiot, if I had

1) proven myself incompetent to read a simple answer key for two consecutive questions

2) not bothered to check my post before sending

3) not bothered to recheck the answer key after being told that I'd screwed up by the "Best Instructor" on this thread - Hey, they took a poll...

4) forgotten that I was the one asking for help.


But wait, that's not me, that's you.

Idiot.

Good luck with your legal career.
quid leges sine moribus vanae proficiunt?

theunderdog

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Re: Feb 1996 LR #25 (MODIFIED.)
« Reply #7 on: September 01, 2005, 12:10:50 AM »
Don't mess with theo.  I got his back.

uwofresh

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Re: Feb 1996 LR #25 (LAST Q, sorry guys.)
« Reply #8 on: September 01, 2005, 12:12:06 AM »

You might try including the credited answer.

the answer is D Theo.  Can you tell me why it's the right one? and why the other one isn't?
Quote


It's E), moron.
Quote

I just made a mistake.  No need to get so offensive, idiot.
Quote


I would be an idiot, if I had

1) proven myself incompetent to read a simple answer key for two consecutive questions

2) not bothered to check my post before sending

3) not bothered to recheck the answer key after being told that I'd screwed up by the "Best Instructor" on this thread - Hey, they took a poll...

4) forgotten that I was the one asking for help.


But wait, that's not me, that's you.

Idiot.

Good luck with your legal career.

I honestly don't understand why you're being so offensive.  I'm asking a question and if you don't want to help, then just move along.  Why call someone an idiot just because he made an excuse or post the question the way you want them to?  If you don't like it, then move along.  Easy as that.

theunderdog

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Re: Feb 1996 LR #25 (MODIFIED.)
« Reply #9 on: September 01, 2005, 12:13:53 AM »
You called him an 'idiot,' and he was about to help you.