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some maths to think about watch

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    what would happen in an auction, if the rules were that the winner had to pay the runner up the runner up's bid, as well as the auctioneer their own bid?

    There's an incentive to increase your bid (even if you're the runner up at small bids) because there's a probability that you will be the runner up and make a gain. But there's an incentive not to because you may well end up winning and paying the runner up too.
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    Isn't winning the auction the whole idea
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    what *are* you talking about?!
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    (Original post by userunknown)
    Isn't winning the auction the whole idea
    Not if you end up paying more than you value the item.
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    Easy to cheat the system though. Interesting idea none the less. x
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    (Original post by undercover-ange)
    Easy to cheat the system though.
    Ooh? You mean through collusion?
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    I think this auction would have a low final value and isn't that interesting actually.

    What if you had an auction where the runner up had to pay the winner their most recent bid? Imagine you're the runner up, if you don't bid again you will make a net loss of your most recent bid, but if you do bid again (and win) you will only end up losing the difference between your bid and the other person's bid. This auction would go on forever?
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    but how many runners up would want to pay for nothing...
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    (Original post by 3xhilaration)
    but how many runners up would want to pay for nothing...
    well when you engage in an auction you agree the rules before hand, they wouldn't have much choice.
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    What about an auction where you have to pay the seller your bid, regardless of whether or not you won the auction. That could give huge profits as no one would want to waste loads of money for no return
 
 
 
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