Optimal bidding strategy in second-price sealed-bid auction


Consider an antique auction where bidders have independent private values. There are two bidders, each of which perceives that valuations are uniformly distributed between $100 and $1000. One of the bidders is Sue, who knows her own valuation is $200. What is Sue's optimal bidding strategy in a second-price sealed-bid auction:

I) submit a bid of $200.
II) submit a bid of $150.
III) submit a bid that is less than $150.
IV) yell "mine" when the bid reaches $150.
V) yell "mine" when the bid reaches $210.

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Microeconomics: Optimal bidding strategy in second-price sealed-bid auction
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