1 - Boston College
You don’t know the true value of this antique, but only that this value is $100,000 with probability (, and $50,000 with probability 1-(. You want to sell this to an antique dealer, who, you know, will be able to assess the true value of the object with probability 1. Assume that you plan to make a take-it-or-leave-it offer at price P to the dealer. If the dealer accepts the offer, he has to ... ................
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