How does that change a bidder optimal strategy

Reference no: EM131021674

We made the argument that a bidder on an eBay auction has a dominant strategy of bidding only once, with that bid being the maximum the bidder would be willing to pay.

a. Is it possible that a bidder might receive useful information during the auction, particularly from the dollar amounts other bidders are bidding? If so, how does that change a bidder's optimal strategy?

b. Many people recommend the practice of "sniping," or placing your bid at the last second before the auction ends. Is there a connection between sniping and your answer to part (a)?

Reference no: EM131021674

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