(b) We do several iterations of eliminating strictly dominated strategies. First, note that when v < 75, bidding 75 is strictly dominated: regardless of the other bidder’s strategy, you will win the auction at least half the time, giving strictly negative payoff, while bidding 0 ensures a payoff of 0. Second, assume your opponent never bids 75 unless his value is at least 75. Then a bid of 50 w...
