Is there a known formula to calculate perceived value? If I am auctioning some popular product that is worth $100 (shelf price), how much would people bid if they:
- Have a 1 in
Cchance of winning the product.
- Will forfeit
Pof their bid amount if they lose.
B = Average bid.
V = Shelf value of the product.
C = # of bidders.
P = Percentage of bid amount forfeited for losing.
I'm looking for a formula in which I can plug in values for the variables
I'm not too "mathy" so I don't really know what tags to apply to this question, sorry about that.