Jane Street–styleTraderTraderQuestion #55
You want to buy a car at an auction where the car's price is uniformly distributed between $0 and $1000. If you bid more than the car's price, you win it at the price you bid; if you bid less than the car's price, you do not win it but also do not lose anything. You can sell the car for 1.5 times the value for which you bought it. What should you bid to maximize your expected profit?
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