2 ms·
I gave a scenario where that doesn't work. It's only rational if everyone else does it. If some people won't do it, then by raising the price early you may indu
by ikeboy 10y ago
I gave a scenario where that doesn't work. It's only rational if everyone else does it. If some people won't do it, then by raising the price early you may induce them to bid higher, which is bad for you.
- bluedevil2k 10y agoIt's not bad if they bid higher than you - you being a rational person would know that you'd be unwilling to pay higher than your only placed bid, so you aren't really "losing" anything
- ikeboy 10y agoIt's bad if, if you wouldn't have bid so high, you'd have been able to win at the end with a lower bid than your highest.
- rasz_pl 10y agoUnless you enjoy misery, trolling, and derive satisfaction from forcing other people to make stupid decisions. Personally I'm more than happy losing a bid if I make someone else suffer winner's curse just because they are blinded by escalation of commitment and a long list of other biases. One of my favourite speeches touching on the subject: The Psychology of Human Misjudgement - Charlie Munger Full Speech bit about auctions is at 59:30 https://youtu.be/pqzcCfUglws?t=59m30s https://youtu.be/pqzcCfUglws?t=59m30s text https://buffettmungerwisdom.files.wordpress.com/2013/01/mungerspeech_june_95.pdf https://buffettmungerwisdom.files.wordpress.com/2013/01/mung...