Science
The auction where losing can cost more than winning
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The Dollar Auction is a horrific game theory trap. An auctioneer offers a one-dollar bill to the highest bidder, but the second-highest bidder must also pay their bid and gets nothing. As bids approach ninety-nine cents, players irrationally keep escalating bids vastly past a dollar simply to avoid the absolute loss of being in second place, guaranteeing mathematically massive losses.
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