Trustworthy coordination obliterates the pay-all auction. Anyone in the room can still defect and bid $2, and the question is whether you let them get away with it, or whether you commit to chasing them in a destructive bidding war.
The group either coordinated or it didn’t. Trustworthy only comes into play when you’re looking at a human participant’s expectations, not the actions they’re taking.
Also, ‘letting them get away with it’ isn’t necessarily a binary question. Unless you will literally never see them again, you punish them outside the bidding system, and they know you will punish them outside the bidding system, so they do not defect unless they don’t trust your willingness or ability to punish them sufficiently.
Also, ‘letting them get away with it’ isn’t necessarily a binary question. Unless you will literally never see them again, you punish them outside the bidding system, and they know you will punish them outside the bidding system, so they do not defect unless they don’t trust your willingness or ability to punish them sufficiently.
I need to gather a group of complete strangers and auction a dollar to them. Maybe in a waiting room somewhere. Are there any laws against holding auctions in waiting rooms or long lines at the sandwich shop?
Trustworthy coordination obliterates the pay-all auction. Anyone in the room can still defect and bid $2, and the question is whether you let them get away with it, or whether you commit to chasing them in a destructive bidding war.
The group either coordinated or it didn’t. Trustworthy only comes into play when you’re looking at a human participant’s expectations, not the actions they’re taking.
Also, ‘letting them get away with it’ isn’t necessarily a binary question. Unless you will literally never see them again, you punish them outside the bidding system, and they know you will punish them outside the bidding system, so they do not defect unless they don’t trust your willingness or ability to punish them sufficiently.
And this was a group of housemates, so...
I need to gather a group of complete strangers and auction a dollar to them. Maybe in a waiting room somewhere. Are there any laws against holding auctions in waiting rooms or long lines at the sandwich shop?