Brent and Stuart are the only buyers in a sealed-bid first-price auction of medical devices….
Brent and Stuart are the only buyers in a sealed-bid first-price auction of medical devices. Brent knows that Stuart’s private value is uniformly distributed over [0, 2], and that Stuart’s strategy is
(a) What is Brent’s optimal strategy?
(b) What is Brent’s expected payment if he implements this optimal strategy (as a function of his own private value)?

