dollar auction
Definition
A non-zero sum sequential game designed to illustrate a paradox of rational choice theory. The game is started by auctioning $1 to the highest bidder. The highest bidder will get $1 less the amount of bid. If the highest bid is 20 cents, the winner will get 80 cents. As the bidding approaches $1, the goal of the game will be to minimize losses rather than maximize the gain.
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