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(Solved): Suppose that each real number between one and two represents a seller whose (personal) value of thei ...



Suppose that each real number between one and two represents a seller whose (personal) value of their car is equal to their number. An individual buyer values cars more than each seller does; specifically, if a seller’s number is ri, then the buyer values it at bri where 1 < b. a. If b = 1.5, is there a Bayesian Nash Equilibrium where all sellers participate in the market? If so, provide an example of a price such that the buyer and all the sellers are willing to participate. If not, why not? b. If b = 1.2, is there a Bayesian Nash Equilibrium where all sellers participate in the market? If so, provide an example of a price such that the buyer and all the sellers are willing to participate. If not, why not?



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