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Unfortunately (fortunately?) - people aren't fungible like that. Also, note that 2nd-price auctions don't help if many bidders overbid. You'd have to take some
by RainyDayTmrw 1y ago
Unfortunately (fortunately?) - people aren't fungible like that.
Also, note that 2nd-price auctions don't help if many bidders overbid. You'd have to take some sort of consensus price. It's possible, but I'm not aware of any well-known examples.
- soared 1y agoTechnically if more than 1 party bids high, the market rate is that high and the majority of parties have just underbid the market rate. But yeah agreed, 1 hour for me is not equal to 1 hour for someone else. Just a fun thing to think about.
- RainyDayTmrw 1y agoInterestingly, the winner's curse doesn't talk about market rate. It supposes that the thing in question has some sort of objective, anchored value, which, importantly, the bidders don't know or are misinformed about ahead of time.