dollar auction
A non-zero-sum sequential game designed to illustrate a paradox brought about by…A non-zero-sum sequential game designed to illustrate a paradox brought about by traditional rational-choice theory in which players are compelled to make an ultimately irrational decision based entirely on a sequence of apparently rational choices made throughout the game. It involves an auction for a dollar bill where the second-highest bidder loses the amount that they bid, making them the biggest loser in the auction.
» Yanni's paintings sell for millions of dollars at auction.
Meaning
1 sensesA non-zero-sum sequential game designed to illustrate a paradox brought about by traditional rational-choice theory in which players are compelled to make an ultimately irrational decision based entirely on a sequence of apparently rational choices made throughout the game. It involves an auction for a dollar bill where the second-highest bidder loses the amount that they bid, making them the biggest loser in the auction.
Examples
2 sentencesYanni's paintings sell for millions of dollars at auction.
One of his paintings fetched more than a million dollars at auction.
Forms
plural: dollar auctions| Singular | dollar auction |
|---|---|
| Plural | dollar auctions |
regular