Game Theory at Work(c) How to Use Game Theory to Outthink and Outmaneuver Your Competition

Auctions are useful for sellers because they automatically adjust the price based upon buyer interest.

Auctions are most advantageous to those selling time-limited goods or services.

In first price sealed-bid auctions, you should always bid less than what the good is worth to you.

In honest second price sealed-bid auctions, if you know exactly how much the good is worth to you, then you should bid this amount.

If you are not sure of the good’s value, you should beware of the winner’s curse, which holds that the winning buyer is often the buyer who most overvalued the good.

Auctions can be used to allocate tasks among employees.