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Even without revealing the highest offer, the offers themselves constitute a silent auction, which is where a lot of the information asymmetry comes from. If I
by WaxProlix 9y ago
Even without revealing the highest offer, the offers themselves constitute a silent auction, which is where a lot of the information asymmetry comes from. If I could speak to each of the other people and tell them I had X amount to spend we could all agree to walk away or make offers without going through a bunch of hassle and (for 32 of 33 offerers) heartbreak. The process really highlights to me how broken certain types of 'market' can be when there's a monopoly of information.
- deleted 9y ago[deleted]
- tehlike 9y agoWhat you are talking is second price auction. Winner gets the house, but pays the price of the runner-up. I wish this existed.
- infinite8s 9y agoWhy would a seller agree to this type of auction?
- skj 9y agoTo get people to be more aggressive with their bids.
- tehlike 9y agotoomuchtodo: I am not sure if i would call it "true" value. The true value is what you'd get if you were to sell it again. Maybe at that same day, which sounds to me like the runner-up bid.
- DougWebb 9y agoWhy would the seller go along with the idea that the buyers would negotiate amongst themselves to choose a price?
- WaxProlix 9y agoThey wouldn't, because it's not in their interest.