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Decision-making in a business

1) i) [For all the questions today, assume that the seller only sells if your bid is
strictly higher than the firm’s value] Suppose the value of a firm is uniformly
distributed in the interval [0, 50]. The seller knows the value of the firm. You
are the buyer and you don’t know the value of the firm. You know that if you
acquire the firm, its value will go up by 50%. What is your expected value
from bidding b for the firm? What is your optimal bid?
ii) What is your expected value from bidding b for the firm, under the cursed
equilibrium model? What is your optimal bid under this model?
iii) Suppose the value of a firm is equally likely to be 0 or 50. The seller knows
the value of the firm. You are the buyer and you don’t know the value of the
firm. You know that if you acquire the firm, its value will go up by 50%. What
is your expected value from bidding b > 40 for the firm? Calculate the same
for b ≤ 40. What is your optimal bid?
2) The second question is a decision-making task. You will be provided a link
to a survey, and you would be asked to put in your student ID at the very end,
as a proof of completion. Download the file and then click on the link to
complete it: Hyperlink.

Sample Solution

In the Victorian period, and today’s nobles exist. These are people who are of noble birth right and is only passed on from generation to generation. It is a well respected position, but the difference between the nobles of today’s day and the older ones is the power that they have. In today’s time the nobles have little power only respect, but in the Victorian period the power was starting to diminish but it still existed. The characters in the play who were of noble birth did indeed know how to use that power. Well when one makes a Marxist criticism it can’t be solely based on the story’s view of the servants, but however one needs to also look at the way the nobility are viewed. In Oscar Wilde’s play he seems to make almost a mockery of the nobility. When one sees the way the nobles are portrayed one will think this is a sarcasm on the nobles, but however if one examines it closer he/she may realize this is closer to the truth than previous accounts of the nobles. In the play Oscar Wilde does not hold back in fears he would offend anyone he wrote a play to entertain, but he also did an excellent job on reflecting how the nobles are. Firstly he displays the character of Algernon, who is, quite frankly, a languid in debt young man, but nevertheless he is still a noble. With this character Wilde show’s the reader that all nobles aren’t perfect and can be more flawed than the average person, and portrayed was the fact that the rich and noble sometimes seem to abuse that position and end up in a deeper hole than most others. Then there is his Aunt Augusta, who is a very powerful character. Aunt Augusta in her own rights is the dominant persona in the play. She holds the cards and plays them at her own discretion. Her character reveals to the audience that in nobility there isn’t just the man who controls things, but in many cases it is t
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