Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Hmm you laugh, but if you could sell dollar bills at $0.75 but you limited the amount any person could buy. And you made them look at advertising, and collected all sorts of personal info on them. You could easily quite a bit of money off them. More then what you lose in selling the dollar bills at a loss.


They did this in the 90s. I remember I had the All Advantage tool bar running at all times and made like $20 a month.


My economics professor auctioned $1. Someone bought it above par.


The lesson your class was supposed to learn is that people aren't always rational. Did they?

(And did your economics class then go on to assume everyone is perfectly rational and understands their own utility functions, anyway?)


Rational doesn't mean valuing every dollar exactly the same. Buying a $1 for more than $1 from an economics professor is funny, maybe a good story, maybe a good keepsake, and plausibly worth more in utility than what they paid.


Was it a Dollar Auction? Because if so there is a little more nuance than you're implying.

https://en.wikipedia.org/wiki/Dollar_auction

"players are compelled to make an ultimately irrational decision based completely on a sequence of apparently rational choices made throughout the game."




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: