I have a one dollar bill. there is a crowd of people around me. I hold it up and say that i will auction the one dollar bill off, and the dollar would go to the highest bidder.

The catch? the first AND second highest bidder both have to pay me whatever they bid. For example, if the bidding stops when someone bids 1.00 and the next person bids .95, then I get 1.95, and the winner gets nothing, the second person loses 95 cents.

What would you do if you were at this auction, and there had to be at least one bid? What is the "winning" strategy, assuming that everyone will want to do what is best for them?

Ok people, the question is how YOU would get the most money auctioning off the dollar, NOT other people. The way to get the most cash would be to wait for someone to bid 98 or 99 cents, then have a friend yell out a dollar, and the person who bid 99 cents would have to pay you. You'd win 99 cents.

Posted by Pickels on 2003-06-04 12:23:13