BRIDGES MATH 115B STRAT_OIL LEASE.DOCXStrategies for Bidding on an Oil Lease.[1] Bid your signal. ANALYZE THIS STRATEGY GIVING LOGICAL SUPPORT FOR YOUR REASONING.[2] Determine the Winner’s Curse and subtract that (or some part thereof) from your signal toobtain your bid. ANALYZE THIS STRATEGY GIVING LOGICAL SUPPORT FOR YOUR REASONING.[3] Determine the Winner’s Blessing and subtract that along with the Winner’s Curse (or some parts thereof) from your signal to obtain your bid. ANALYZE THIS STRATEGY GIVING LOGICAL SUPPORT FOR YOUR REASONING.[4] Adjust all other companies by the sum of the Winner’s Curse and the Winner’s Blessing and determine your optimal adjustment. Then calculate your bid.(a) Import the worksheet Adjust-4 from the file TeamAslan_Class.xlsx into your project file and complete it. (b) Determine 10 good data-points for your company. Place these points and their expected values in B14 through C23 of the worksheet Strategy in Auction Focus.xlsx.(c) Find the equation of the 4th degree polynomial trendline. Place the coefficients of this trendline in C34 through C38 [USE 8 DECIMAL PLACES].(d) Use Solver to find the value of a [cell E35]. This is your adjustment for Strategy #4. You subtract this amount from your signal to get your optimal bid under the conditions of this strategy.ANALYZE THIS STRATEGY GIVING LOGICAL SUPPORT FOR YOUR REASONING.[5] Adjust all other companies by the Winner’s Curse only and determine your optimal adjustment. Then calculate your bid. THE METHOD HERE IS SIMILAR TO THE METHOD FOR STRATEGY #4. BE SURE TO USE THAT PART OF THE WORKSHEET STRATEGY BEGINNING WITH ROW 47! ANALYZE THIS STRATEGY GIVING LOGICAL SUPPORT FORYOUR REASONING. [6] Determine a stable Nash equilibrium bid.(a) Use Auction Equilibrium.xlsm and set calculation to automatic.(b) In G40, type “(2WC + WB)/2” EXAMPLE: WC = 22.0536(c) In G41, calculate (2WC+WB)/2 WB = 6.1228(d) In E40, calculate (D39+E39)/2 (2WC + WB) / 2 = 25.1150(e) In E41, type “Avg of D39 & E39”Trial #1 RESULTS OF TRIAL #1:(f) Optimize . COMPANY 1 OTHERS . (g) Copy your results in chart form. 24.0858 25.1150(h) Enter the new average in cell E39. 24.6921 24.6004(i) Adjust 24.6892 24.6463(j) Copy your results on the next line of the chart. 24.6518 24.6677(k) Repeat steps (h) – (j) until the numbers in D39 24.6520 24.6598and E39 are the same. 24.6600 24.6559ADJUSTMENT IS $24.66 MILLION FOR TRIAL 1.This completes Trial #1.Complete this process two more times (Trial #2 and Trial #3)Average these three adjustments to obtain the best stable adjustment. Calculate your optimal bid for this strategy.BRIDGES MATH 115B STRAT_OIL LEASE.DOCXANALYZE THIS STRATEGY GIVING LOGICAL SUPPORT FOR YOUR
View Full Document
Unlocking...