"With E, aren't we assuming that buyers will not bid at all. as they are thinking - "Oh!! it is so desirable that it would be very costly for me, it doesn't make any sense to bid at all." May be bidders go other way around, "Oh!! it is so desirable that I need to get it, I will get it.""
Yes, we are assuming that, because that's implied in E. That it doesn't make economic sense to bid is strongly correlated with not bidding. Your second "bidder thought process"
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Yes, we are assuming that, because that's implied in E. That it doesn't make economic sense to bid is strongly correlated with not bidding. Your second "bidder thought process"
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