In common value auctions, differences in private valuations stem from:
A) Differences in the players' attitudes towards risk.
B) Different estimates of the actual value of the object being auctioned.
C) Differences in player types.
D) Correlated value estimates.
E) All of the above are correct.

Question

Quizplus · Accepted Answer

In common value auctions, all bidders have the same actual value for the item, but they have different estimates of this value, leading to differences in private valuations.

In Common Value Auctions, Differences in Private Valuations Stem From