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There is just one amount of oil in that well,
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and that oil is just worth one amount at the market price.
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So that's a classic example of a common value auction.
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The value of the good for sale,
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the true value if you like, is the same for all.
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We'll use the notation V to denote this common value that this object has.
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Now, the other extreme is private value
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and it's really such an extreme it's hard to think of good examples.
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But the idea is that the value of the good at hand,
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not only is it different for everybody,
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but my valuation of this good has no bearing
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whatsoever on your value for the good,