Bidding with a fixed PIBP: A deltaperson is bidding on a $100 bill. His maximum competitive bid distribution, is Beta (10, 10) on a scale 0 to 100. Plot the optimal bid versus the risk-aversion...

Bidding with a fixed PIBP: A deltaperson is bidding on a $100 bill. His maximum competitive bid distribution, is Beta (10, 10) on a scale 0 to 100. Plot the optimal bid versus the risk-aversion coefficient. Does the optimal bid increase or decrease with risk aversion?

Repeat Problem 7 if the item on offer is a certificate offering $100 with a probability of 0.7 and 0 with a probability of 0.3. Explain any differences.