Comments on: How to avoid the winner’s curse using game theory http://mindyourdecisions.com/blog/2010/01/12/how-to-avoid-the-winners-curse-using-game-theory/ Articles on game theory and personal finance Tue, 22 May 2012 15:59:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Simoleon Sense » Blog Archive » How to avoid the winner’s curse using game theory http://mindyourdecisions.com/blog/2010/01/12/how-to-avoid-the-winners-curse-using-game-theory/comment-page-1/#comment-6247 Simoleon Sense » Blog Archive » How to avoid the winner’s curse using game theory Sun, 17 Jan 2010 00:45:07 +0000 http://mindyourdecisions.com/blog/?p=1895#comment-6247 [...] Click Here: How To Avoid The Winner’s Curse Using Game Theory Introduction (Via Mind Your Decisions) I’ve made a huge mistake–GOB and others from Arrested Development [...] [...] Click Here: How To Avoid The Winner’s Curse Using Game Theory Introduction (Via Mind Your Decisions) I’ve made a huge mistake–GOB and others from Arrested Development [...]

]]> By: links for 2010-01-13 « Blarney Fellow http://mindyourdecisions.com/blog/2010/01/12/how-to-avoid-the-winners-curse-using-game-theory/comment-page-1/#comment-6238 links for 2010-01-13 « Blarney Fellow Thu, 14 Jan 2010 01:32:20 +0000 http://mindyourdecisions.com/blog/?p=1895#comment-6238 [...] How to avoid the winner’s curse using game theory – Mind Your Decisions ~3min (tags: game-theory psychology negotiations) [...] [...] How to avoid the winner’s curse using game theory – Mind Your Decisions ~3min (tags: game-theory psychology negotiations) [...]

]]> By: Erik http://mindyourdecisions.com/blog/2010/01/12/how-to-avoid-the-winners-curse-using-game-theory/comment-page-1/#comment-6226 Erik Wed, 13 Jan 2010 09:05:30 +0000 http://mindyourdecisions.com/blog/?p=1895#comment-6226 I think it is the right way to determine the "non losing way" and do the rest with leverage. If u have no leverage, U probably shouldn't do the way anyway. And if U have one U can use it to gain, starting from the point where U can't lose anything. just my2cents I think it is the right way to determine the “non losing way” and do the rest with leverage. If u have no leverage, U probably shouldn’t do the way anyway. And if U have one U can use it to gain, starting from the point where U can’t lose anything.

just my2cents

]]> By: Ben http://mindyourdecisions.com/blog/2010/01/12/how-to-avoid-the-winners-curse-using-game-theory/comment-page-1/#comment-6225 Ben Wed, 13 Jan 2010 06:21:55 +0000 http://mindyourdecisions.com/blog/?p=1895#comment-6225 I disagree with the revaluing of the random variable that represents the price. Why should the seller assume the price you are offering is the highest market price? The bidder has no effect on the market value range of 4-12 thousand. The dependence is not explicitly shown. One tell-tale something went wrong. You said the seller knows more, but your analysis shows he gets a less than average bid from the buyer. This means that having better information means you get a worse sell. I disagree with the revaluing of the random variable that represents the price.

Why should the seller assume the price you are offering is the highest market price? The bidder has no effect on the market value range of 4-12 thousand. The dependence is not explicitly shown.

One tell-tale something went wrong. You said the seller knows more, but your analysis shows he gets a less than average bid from the buyer. This means that having better information means you get a worse sell.

]]> By: Breakaway http://mindyourdecisions.com/blog/2010/01/12/how-to-avoid-the-winners-curse-using-game-theory/comment-page-1/#comment-6219 Breakaway Tue, 12 Jan 2010 16:38:24 +0000 http://mindyourdecisions.com/blog/?p=1895#comment-6219 This situation assumes that there is zero monthly income from the blog (which is unlikely, and if you're dropping $4k-12k on a blog that has zero monthly income, you've got other issues than simply a math problem.. haha)... But, how would you factor in monthly residual earnings... the standard selling point for a blog making money is around 10x the monthly income... So if it's making $600/month, it'd sell for about $6000... (I know the example of buying a blog was just what was used for the sake of having something to buy, not necessarily the intricacies of buying a blog/website) This situation assumes that there is zero monthly income from the blog (which is unlikely, and if you’re dropping $4k-12k on a blog that has zero monthly income, you’ve got other issues than simply a math problem.. haha)…

But, how would you factor in monthly residual earnings… the standard selling point for a blog making money is around 10x the monthly income… So if it’s making $600/month, it’d sell for about $6000…

(I know the example of buying a blog was just what was used for the sake of having something to buy, not necessarily the intricacies of buying a blog/website)

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