Consider a seller who wants to sell a single unit of a good anda group of firms interested in buying the good. The seller decidesto run a sealed-bid, second-price auction. Your firm intends to bidin the auction and had a private value of c for the good beingsold, but is unsure of the number of other firms bidding. Therewill be either two or three additional firms bidding in theauction, each with an independent private value for the good. Whatbid should your firm submit in this auction, and how (if at all)should the bid depend on the number of other firms whichparticipate? Provide a justification for your strategy.
