TheOtherDave comments on Open Thread, June 2-15, 2013 - Less Wrong

5 Post author: TimS 02 June 2013 02:22AM

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Comment author: TheOtherDave 10 June 2013 06:49:57PM 0 points [-]

Not the same thing, surely? Submitting an N-1 bid causes the top bidder to pay effectively their bid... in effect turning a second-bid auction into an English auction as defined above. Setting a reserve price sets a floor that has no relationship to the top bidder's bid.

But sure, the fact that you didn't set a reserve price also suggests that you wouldn't take advantage of this loophole in your counterfactual second-bid auction.