N players are bidding on an object in a first priceauction. The object has a value of vi foreach player i, where v1 > v2> ...>vn> 0. Each player bids secretly choosingnonnegative real number. The winner is the player who bids thelargest number, and that player must pay the amount they bid. If ittie, then the player with the lowest index wins. Formulatethis situation as a strategic game( describe the players, actions,and payoff functions) and show that in all the Nash equilibrium,player 1 wins the auction.
