When significant uncertainty exists surrounding the true value of an object at auction,buyers contemplating a bid should bid less when:
A) they have less information about the true value of the item.
B) they are less confident in their own estimates of the true value of the object.
C) there are many other buyers bidding against them.
D) all of the above.
E) none of the above.

Question

Quizplus · Accepted Answer

When significant uncertainty exists surrounding the true value of an object at auction, buyers should bid less when they have less information about the true value of the item, when they are less confident in their own estimates of the true value of the object, and when there are many other buyers bidding against them. Therefore, all of the above factors should be taken into consideration when deciding on the bid.

When Significant Uncertainty Exists Surrounding the True Value of an Object