If buyers' private values are drawn from different distributions, then which of the following statements is incorrect?
A) Revenue equivalence will no longer hold.
B) In an English auction, each buyer will be willing to bid up to its reservation price if necessary.
C) The sealed bid auction will yield greater expected revenue than English auction.
D) Buyers will employ identical bidding strategies.
E) In an English auction, the allocation of the item is efficient.

Question

Quizplus · Accepted Answer

If buyers' private values are drawn from different distributions, they may employ different bidding strategies based on their reservation prices and value estimates. Therefore, buyers will not employ identical bidding strategies. The other statements may still hold true.

If Buyers' Private Values Are Drawn from Different Distributions, Then