A non-zero sum sequential game designed to illustrate a paradox of rational choice theory. The game is started by auctioning $1 to the highest bidder. The highest bidder will get $1 less the amount of bid. If the highest bid is 20 cents, the winner will get 80 cents. As the bidding approaches $1, the goal of the game will be to minimize losses rather than maximize the gain.
Related information about dollar auction:
- Dollar auction - Wikipedia, the free encyclopedia
The dollar auction is a non-zero sum sequential game designed by economist Martin Shubik to illustrate a paradox brought about by traditional rational choice ...
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Jan 25, 2006 ... Dollar Auction. How much would you bid for a dollar? There's a catch - you have to pay your highest bid even if you don't win the dollar.
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Some common and perverse games as they apply to real life; in this case the Dollar Auction game, by which a dollar bill can be sold for $3 – $5 at a party.
- Economic View - At Swoopo.com, a Price for - The New York Times
Nov 14, 2009 ... The dollar auction game was invented by a pioneer of game theory, Martin Shubik of Yale, and it illustrates the concept of “escalation of ...
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Jun 26, 2003 ... The Dollar Auction Game: A Paradox in Noncooperative Behavior and. Escalation. Martin Shubik. The Journal of Conflict Resolution, Volume ...
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Dec 15, 2008 ... Tom sends in a link to a description of how swoopo works, and it sounds very much like the dollar auction. Basically, you purchase "bids" and ...
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- The Dollar Auction - YouTube
May 2, 2010 ... Sign in with your YouTube Account (YouTube, Google+, Gmail, Orkut, Picasa, or Chrome) to rate joeinsful's comment. Sign in or Create an ...