I participated in a study for the Harvard Business School that ran like this. Each round, you participated in a one-bid auction against another person (anonymous, and a different opponent each round), bidding anywhere from 0 to 100 "points" on each of three items. You paid REGARDLESS of whether you won any of the auctions, but you got 100 points if you won two or three of the items. You started with a budget of 1500 points. So, since the winners were comped, this was technically a "Glum Losers" auction.
I might not have been the best study subject, however, since I knew we were getting paid a penny a point, and devised a profit-maximizing strategy about halfway through. Any guesses as to what it was? -John P. >From: [EMAIL PROTECTED] >Reply-To: [EMAIL PROTECTED] >To: [EMAIL PROTECTED] >Subject: Glum losers auction >Date: Fri, 26 Jul 2002 18:59:56 EDT > >In The Armchair Economist, Landsburg describes the "Glum Losers" auction. >The winner (the highest bidder) gets the product and everyone else pays the >amount of their bid. > >Has this auction ever been used? If so, any details? > >Cyril Morong ------------------------------------------------------------------------------ I'm never gonna work another day in my life. The gods told me to relax; they said I'm gonna be fixed up right. I'm never gonna work another day in my life. I'm way too busy powertrippin', but I'm gonna shed you some light. - Monster Magnet, "Powertrip" _________________________________________________________________ Chat with friends online, try MSN Messenger: http://messenger.msn.com
