Suppose you are participating in a first-price sealed-bid auction. In this auction, each bidder submits one bid without observing the bids of other bidders. The winner is the bidder who submits the...

Suppose you are participating in a first-price sealed-bid auction. In this auction, each bidder submits one bid without observing the bids of other bidders. The winner is the bidder who submits the highest bid. The winning bidder pays an amount equal to their bid. Suppose that each bidder’s valuation for the item being sold is independent of how much other bidders value the item. Do you think it is still an optimal strategy to bid how much the item is worth to you? If not, should you place a bid which is higher or lower than your valuation?