It's extremely unlikely that he makes money. From the article, the rent is set by auction. So, it's a common value auction with incomplete information, the pe

It's extremely unlikely that he makes money. From the article, the rent is set by auction. So, it's a common value auction with incomplete information, the perfect setting for the Winner's Curse: http://en.wikipedia.org/wiki/Winner%27s_curse http://en.wikipedia.org/wiki/Winner%27s_curse If you won the rent auction, then you definitely overbid.