4 ms·

If I know your maximum price before the auction, I can do whatever is in my power to be able to exceed that price, if I choose. Especially in auctions with mul

• gruez 5y ago
  >If I know your maximum price before the auction, I can do whatever is in my power to be able to exceed that price, if I choose. But don't you have a limited budget? If your budget is $40M, and you know that the DAO is going to bid all the way up to $50M, how does that help you? You will still lose the bid. Conversely, if your budget is $50M, and you know that the DAO will only bid to $40M, how does that help you? During open bidding (ie. non-sealed bid), the bids go up incrementally, so after the DAO placed its bid, all you need to do is increase your bid by the minimum increment and you'll win. Using the strategy of "increment the minimum amount until you reach your budget" gets the same result.
  • captn3m0 5y ago
    "Whatever is in my power" can mean lots of things. If you were short by $1M, you could probably convince someone to loan you that amount quite easily. The GP already mentioned colluding - you could for eg, merge funds with another potential bidder (or donor) to "just cross the amount" in exchange for something (say a yearly showing of the constitution at a museum of their choice) Knowing your opponents maximum amount makes your riskier bets (loaning money, striking deals) much less risky - atleast in a two-way auction(?)