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Consider two individuals (A and B) both interested in purchasing the same house. Each knows their own valuation (VA and VB), but does not know the other persons valuation. However, each makes the conjecture that the other valuation is uniformly distributed over the interval Vi, V2|. What are A and B expected to bid if the highest bid gets the house?

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Then pien t USrahe So, aads to moimize, 2 2

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