Betty White’s house in Carmel, CA is being auctioned off in…
Betty White’s house in Carmel, CA is being auctioned off in a second-price sealed bid auction. There are 5 mega-fans taking part in the auction. They each have a private value listed below. All bidders, except Bidder #4, have taken Business Microeconomics and understand auction theory. As such, these bidders will submit bids using their optimal strategies, while Bidder #4 submits a bid of $12.5 million. Which bidder will win the auction and what will be the amount paid?