Saturday, June 03, 2006

The Price is Right

When it comes to setting a maximum bid on eBay, I tend to choose numbers such as $20.01, working from the assumption that most people will choose rounder numbers; i.e., $20.01 beats $20.00. Of course, maybe $20.02 is better because it will beat people with a $20.01 strategy. The optimal strategy? Therein lies the problem.


Anonymous kwc said...

I have the same problem. I get into a sort-of-Iocaine-powder conundrum whenever I try to win an eBay auction. I think I convinced myself the best was to randomize the cents, but more realistically other eBay buyers are probably only up to two-cents-worth of meta-level thinking.

12:23 PM  

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