4 ms·
I think it's more often referred to as a Dollar auction[0] - an example where a series of rational decisions leads to irrational behaviour. [0] https://en.wiki
by beagle3 8y ago
I think it's more often referred to as a Dollar auction[0] - an example where a series of rational decisions leads to irrational behaviour.
[0] https://en.wikipedia.org/wiki/Dollar_auction https://en.wikipedia.org/wiki/Dollar_auction
- dmurray 8y agoThe dollar auction is usually run as an experiment in game theory classes and works a little differently from the penny auction sites. In the latter, all of your bids at any point are a sunk cost.
- beaker52 8y agoIt has many names. https://en.m.wikipedia.org/wiki/Bidding_fee_auction https://en.m.wikipedia.org/wiki/Bidding_fee_auction
- beaker52 8y agoAnd I'm a brit. I did the math in cents for greater universality. Maybe a mistake after referring to a penny.
- ender89 8y agoI saw an ad for something like that a while ago, but realized that you couldn't sell an ipad for $0.56 if you weren't getting the full retail plus a margin from somewhere. Thankfully I never got into it.