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Because if you do that you should be indifferent to whether you win or not. Dutch auctions aim to solve that problem.
by foobarqux 13y ago
Because if you do that you should be indifferent to whether you win or not. Dutch auctions aim to solve that problem.
- tedsanders 13y agoDoesn't everyone bid until the point of indifference? What better point is there to stop at?
- foobarqux 13y agoDepends on the type of auction. In a Vickrey [1] auction you bid to the point of indifference but pay the second highest bid, that way you potentially capture some utility surplus. [1] I said "Dutch" but apparently that technically refers to something else.