Dutch Auction - calculating the cumulative competitive bids????

Hi everyone,

I’m stuck on what feels like such a simple calculation. With regard to determining the winning price of a single price Dutch auction, how do I determine/calculate the cumulative competitive bids if the discount rate, bid price, and offer amount is provided?

Any help would be greatly appreciated!

Duh, figured it out. One lesson I’ve learned is to not make the numbers more complicated than they need to be. I was looking for some sophisticated formula when it was just a very simple concept to be employed.

i havent come across a single one of these problems… where did u see an example?

Example 8 of the June 2012 Economics text (pg 30). Part of the solution asks you to find the cumulative competitive bids… It’s clearly a simple calculation that I thought was more complicated than it needed to be.

so how do we calculate them ? im struggling there…

If the LOS does not ask you to calculate, why bother?