Expected Value: Bidding for a House

[kuruman]

Ah, thanks for clarifying! That makes sense. But shouldn't we write the integral as$$\langle \text{Profit}\rangle _{\text{savvy}}= \int_0^{V_m} \frac{1}{V_m} \left( \int_{V}^{V+fV}\dfrac{(n V-B)}{2fV}dB \right) dV$$because the inner integral is not a constant (depends on $V$) so we can't pull it out of the outer integral?

Yes we should. I got lazy.

 

[etotheipi]

I can hardly complain; I think one tiny bit of laziness is quite excused, given the rest of your excellent analysis and work on Excel . Thanks for taking the time to clarify!