Why can’t an individual place a bid of 10,000$ on a pen, knowing they will only pay the last biggest bid of 10$, and no one can top their offer, because no one will pay that price?
In: 0
In typical implementations of second-price auctions the bids are sealed. So you don’t know what the second price is. So you don’t “know” you’re only paying $10. For all you know it could be $9,999.
[deleted]
Let’s say you bid £10 000 on a pen that is worth £10 to you. Another person comes along and bids £15 because that is what it is worth to them. Now you are stuck paying £15, £5 more than the pen is worth to you.
Let’s say you bid £10 000 on a pen that is worth £10 to you. Another person comes along and bids £15 because that is what it is worth to them. Now you are stuck paying £15, £5 more than the pen is worth to you.
Let’s say you bid £10 000 on a pen that is worth £10 to you. Another person comes along and bids £15 because that is what it is worth to them. Now you are stuck paying £15, £5 more than the pen is worth to you.
Latest Answers