But what if your competitor does not bid v/2?
Page 1 of 1
But what if your competitor does not bid v/2?
jrw615 Mon Apr 13, 2009 12:58 am
http://www.marketwatch.com/News/Story/Story.aspx?guid={0F186388-DEDF-467B-8AB3-A13FF669FB87}
This article presents a conundrum where top wall street big shots and others rarely optimize their bid! In a game where 100 dollars was the bid item and the winner would get the 100 dollars, and the second bidder had to pay his bid but received nothing, the winner always bid over 100 which resulted in two losers. This article then goes on explaining the reasoning behind this phenomenon.
This article made me think of how often bidders actually choose to bid v/2 and how realistic this theory is when actually playing the buying game.
This article presents a conundrum where top wall street big shots and others rarely optimize their bid! In a game where 100 dollars was the bid item and the winner would get the 100 dollars, and the second bidder had to pay his bid but received nothing, the winner always bid over 100 which resulted in two losers. This article then goes on explaining the reasoning behind this phenomenon.
This article made me think of how often bidders actually choose to bid v/2 and how realistic this theory is when actually playing the buying game.
jrw615- Posts : 29
Join date : 2009-04-01
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum