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432.The Winner's Curse

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optimal stoppingCh. 6 — Random Variables and Expectation444+ Problems in Probability
You bid on a painting whose value VV is uniform on ($0,$100,000)(\$0, \$100{,}000). If your bid exceeds VV, you win it (paying your bid) and sell it to a museum for 1.5V1.5V. What bid maximizes your profit? (If no bid can profit, bid $0\$0.)

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