This is basically the adverse selection concept which is explained incredibly well in Agustin Lebron's book (ACX review - https://astralcodexten.substack.com/p/

This is basically the adverse selection concept which is explained incredibly well in Agustin Lebron's book (ACX review - https://astralcodexten.substack.com/p/your-book-review-the-laws-of-trading https://astralcodexten.substack.com/p/your-book-review-the-l...) but without as much depth or nuance. Price discovery in an auction is great for the market, not necessarily for the bidder with incomplete info. This article feels like a long intro to an article that never actually starts. NB: No offence to the author if you read this! Criticism is probably just because it was info I already knew.