Respuesta :
Take for instance a seller who sets the best reserve for a second-price auction with only one bidder.The optimal reserve, also known as the monopoly price, is r = 50 + vs 2. The first-order condition is 1 r 50 + vs 100 = 0.
What is a reserve price used for?
A bidder who offers a price that is lower than what the owner will accept is prevented from winning the auction by the reserve price.The walk-away point is the point at which both the buyer and the seller are no longer willing to negotiate.To encourage bidding, the starting price of the auction typically starts lower than the reserve price.
What's the point of eBay's reserve price?
The price at which you are most willing to sell an item is called the reserve price.You can set a low starting price for your auction and increase interest in your item without running the risk of selling it for less than you think it is worth by using a reserve price.
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