Consider the following auction concept. I call it a "SUNK COST AUCTION" Each person bids, but you pay all of the money that you bid for every bid you make. So, if you bid \$1 that \$1 is gone, even if ...
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 ...