Aren’t most of these evil strategies effectively combated by good strategies? For instance, the Republicans could promise 1⁄2 of a stupendous amount of money to the Democrats for all of them voting no and then have one Republican vote yes. The plutocrat pays 1 stupendous amount of money to the Republicans who split it with the Democrats. Shouldn’t the business offering $101 a share just offer $105.01 for the first 500 shares and $96.99 for the other half, then redistribute them like the evil offer? Shouldn’t a family business establish a managed trust instead of relying on such a weak board of directors? Or not sell 51% of their shares to anyone else? Shouldn’t the first bidder for $20 bid $19.99 and slowly build up a wealth in pennies? Shouldn’t bloodthirsty pirates invest the $17000 in faster ships and more cannons?
Even better, if party A want to play the game, they could announce to party B that they will vote for 26% of total (assuming 50%+ is what it takes to pass the vote) and to split in case the bill doesn’t pass. This way they can be sure that party B wouldn’t outvote them without passing the bill and ruining thhe game.
All of them are defeated by the opposition coordinating and precommitment.
In democrats v republicans you can also do it without cross-aisle coordination. Whoever had a majority could just say unilaterally that 0 members will vote for the bill and ensure that it stays dead. The plutocrat would have no incentive to ever offer the deal in the first place, because it would always fail and he’d end up wasting a huge amount of money.
The family business could instead vote 4-to-1 to change the rules themselves. I mean, if the board is allowed to pass motions that divvy up 51% of other people’s shares, they could just pass a motion to take that money back anyhow. Or, since they’re a family they could just coordinate to vote 3-2 and split the money, gain back majority, and re-vote the two board members back.
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?
Aren’t most of these evil strategies effectively combated by good strategies? For instance, the Republicans could promise 1⁄2 of a stupendous amount of money to the Democrats for all of them voting no and then have one Republican vote yes. The plutocrat pays 1 stupendous amount of money to the Republicans who split it with the Democrats. Shouldn’t the business offering $101 a share just offer $105.01 for the first 500 shares and $96.99 for the other half, then redistribute them like the evil offer? Shouldn’t a family business establish a managed trust instead of relying on such a weak board of directors? Or not sell 51% of their shares to anyone else? Shouldn’t the first bidder for $20 bid $19.99 and slowly build up a wealth in pennies? Shouldn’t bloodthirsty pirates invest the $17000 in faster ships and more cannons?
Even better, if party A want to play the game, they could announce to party B that they will vote for 26% of total (assuming 50%+ is what it takes to pass the vote) and to split in case the bill doesn’t pass. This way they can be sure that party B wouldn’t outvote them without passing the bill and ruining thhe game.
All of them are defeated by the opposition coordinating and precommitment.
In democrats v republicans you can also do it without cross-aisle coordination. Whoever had a majority could just say unilaterally that 0 members will vote for the bill and ensure that it stays dead. The plutocrat would have no incentive to ever offer the deal in the first place, because it would always fail and he’d end up wasting a huge amount of money.
The family business could instead vote 4-to-1 to change the rules themselves. I mean, if the board is allowed to pass motions that divvy up 51% of other people’s shares, they could just pass a motion to take that money back anyhow. Or, since they’re a family they could just coordinate to vote 3-2 and split the money, gain back majority, and re-vote the two board members back.
As MBlume noted coordination obliterates the pay-all auction (or all auction systems, really). And as you note, a strong solo strategy wins even without coordination.
Finally, all of the pirates can get greater shares via precommitment. There’s a reason humans evolved rejection to the ultimatum game, afterall.
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?