Problem Set 6

Due: April 2, 2015 Economics 1030

Solutions will be posted on Monday (before the problem set is due), so you

can check your answers if youd like.

Problem 1 (Buying a rm): Consider a generalized version of the buying

a rm problem:

```
The value, of company to Tomasz is distributed uniformly over the
range [ ]
Tomasz knows its true value.
You dont know true value but company is worth times more to you
than it is to Tomasz. (You should assume that 1)
You make a take-it-or-leave-it oer to Tomasz, which Tomasz accepts
if and only if your oer is greater than or equal to his valuation.
You are risk neutral.
```

a. Assume that [ ...

ECON1030 Spring

Ash

**Excerpt from file: **Problem Set 6 Due: April 2, 2015 Economics 1030 Solutions will be posted on Monday (before the problem set is due), so you can check your answers if youd like. Problem 1 (Buying a firm): Consider a generalized version of the buying a firm problem: The value, of company to Tomasz is distributed

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