Comments on: Upside-down auction http://www.26econ.com/upside-down-auction/ Online economics Fri, 21 Nov 2008 01:13:31 +0000 http://wordpress.org/?v=2.3.2 By: PLP http://www.26econ.com/upside-down-auction/#comment-9746 PLP Mon, 18 Aug 2008 21:56:18 +0000 http://www.26econ.com/upside-down-auction/#comment-9746 However, many of these sites have sign-up bonuses. For example, Tribber gives you $500 if you deposit $500. So even if your EV is zero or even a little negative, as long as you don't mind the variance, it seems like taking the free $500 would be worthwhile. However, many of these sites have sign-up bonuses. For example, Tribber gives you $500 if you deposit $500. So even if your EV is zero or even a little negative, as long as you don’t mind the variance, it seems like taking the free $500 would be worthwhile.

]]> By: Mike http://www.26econ.com/upside-down-auction/#comment-3342 Mike Mon, 10 Mar 2008 04:22:03 +0000 http://www.26econ.com/upside-down-auction/#comment-3342 It's a "unique bid auction" - http://en.wikipedia.org/wiki/Unique_bid_auction There are a few of these running around. You're right, in that the expected returns would trend towards zero. I found it interesting to see how the auctioneer covers his cost - rather than take any sort of commission, there are various subscription or per-bid fees to be paid. It’s a “unique bid auction” -
http://en.wikipedia.org/wiki/Unique_bid_auction

There are a few of these running around. You’re right, in that the expected returns would trend towards zero. I found it interesting to see how the auctioneer covers his cost - rather than take any sort of commission, there are various subscription or per-bid fees to be paid.

]]> By: Marco Haan http://www.26econ.com/upside-down-auction/#comment-3264 Marco Haan Thu, 06 Mar 2008 21:58:24 +0000 http://www.26econ.com/upside-down-auction/#comment-3264 Something similar is http://www.bidster.com The only difference seems to be that on this website, the winner does not have to pay his "bid". I think I once figured out that (under some simplifying assumptions) the equilibrium of that game is a mixed strategy with the probability of playing a number is decreasing in the number. This is a paper on a related auction: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=905606 Something similar is http://www.bidster.com The only difference seems to be that on this website, the winner does not have to pay his “bid”. I think I once figured out that (under some simplifying assumptions) the equilibrium of that game is a mixed strategy with the probability of playing a number is decreasing in the number.

This is a paper on a related auction: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=905606

]]> By: Chewxy http://www.26econ.com/upside-down-auction/#comment-3255 Chewxy Thu, 06 Mar 2008 11:09:22 +0000 http://www.26econ.com/upside-down-auction/#comment-3255 Dun know about NZ, but all you gotta do is watch Channel 7 and 9 in Aus at 2 a.m. and you get these sort of ads too - lowest unique bid auctions, for iPhones, and iPods and stuff. Also, you have the Girls Gone Wild ads, which I must say, are slightly more entertaining. I dismiss it as really scammy though. 'Unique' is a keyword. Yes, I agree this has some interesting Game theoretic points, but then again, impractical in real life to the buyers. For a seller with a screwed up moral compass, this is a brilliant idea. Dun know about NZ, but all you gotta do is watch Channel 7 and 9 in Aus at 2 a.m. and you get these sort of ads too - lowest unique bid auctions, for iPhones, and iPods and stuff. Also, you have the Girls Gone Wild ads, which I must say, are slightly more entertaining.

I dismiss it as really scammy though. ‘Unique’ is a keyword.

Yes, I agree this has some interesting Game theoretic points, but then again, impractical in real life to the buyers.

For a seller with a screwed up moral compass, this is a brilliant idea.

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