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Post by omaha on Dec 6, 2008 15:18:24 GMT -5
Leave it to the liberal to fail to anticipate rational, market based behavior. :-)
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Post by Supertramp78 on Dec 6, 2008 15:20:47 GMT -5
Market based behavior with unlimited credit? Isn't that how the housing market crashed?
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Post by John B on Dec 6, 2008 16:19:18 GMT -5
Hmm. I'd be out of the bidding when it hit $100.
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Post by jdd on Dec 6, 2008 17:03:47 GMT -5
In total, I have earned over $20,000 running these auctions in classes over the last decade. Like I said: I'm thinking I'd like to be the auctioneer. (What political philosophy is that?)
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Post by omaha on Dec 6, 2008 17:12:13 GMT -5
Market based behavior with unlimited credit? Isn't that how the housing market crashed? Typical liberal. You make the rules, then complain the messy realities of the real world keep things from turning out like you expected. :-) Seriously, JDD is right...The only rational strategy is not to play. But if you find yourself sucked in, then you can always force a game of infinite length. That's textbook GT, is it not? (When both parties are in possession of perfect information, there is always an optimal strategy that will ensure at least a draw)
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Post by Supertramp78 on Dec 6, 2008 17:20:03 GMT -5
"But if you find yourself sucked in, then you can always force a game of infinite length"
Which explains why there are people who want to stay in Iraq forever.
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Post by omaha on Dec 6, 2008 17:23:39 GMT -5
You mean the Iraqis? Where are they supposed to go?
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Deleted
Deleted Member
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Post by Deleted on Dec 6, 2008 18:20:02 GMT -5
Market based behavior with unlimited credit? Isn't that how the housing market crashed? Typical liberal. You make the rules, then complain the messy realities of the real world keep things from turning out like you expected. :-) Any academic model is idealized. But does that say it doesn't work? The Manhattan project guys couldn't have built a bomb without knowing how mass is related to energy, and that was derived using only a pen and a piece of paper. The implausibility of infinite money aside, I don't think people have access to infinite time, which will force the game to end sooner or later.
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Post by omaha on Dec 6, 2008 23:16:19 GMT -5
No need for infinite time. The rules did not specify the amount of time allowed to consider one's next bid.
Therefore, when I'm at $95, "Joe" is at $100 and its my turn to bid, I will announce that I require 100 years to analyze my options. :-)
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Post by TDR on Dec 7, 2008 12:25:32 GMT -5
How is this the same or different from the thinking that says, "We need to stay in Iraq because if we pull out now, the deaths of all our people will have been in vain"?
But if we stay and kill more, at some point they won't have been in vain?
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Post by TDR on Dec 7, 2008 12:29:06 GMT -5
Oh yeah, and that second place bidder, the one who doesn't have pockets deep enough to stay in after the $100 or $400 mark... he has another option. Just reneg on his contract and walk away.
That's pretty much how the financials handled the derivatives meltdown. Maybe he could ask for a gummint bailout to save his ass.
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Post by Russell Letson on Dec 7, 2008 13:37:01 GMT -5
My response to the invitation to bid: "You guys let me know when you're finished. I'll be at the buffet."
Of course, given games-theory behavior, that may lead to excessive weight gain, so maybe I'll just be watching "Jeopardy" on the bar TV and sipping on a club soda.
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