Vague price sense > guessing how others might bid > guarding against someone aiming for significantly higher ROI than you did > exact price sense, I think?
Yeah, and actually 1-bidding can be a good strategy even from a selfish perspective if you can get enough people to coordinate on it, since a small enough number of high bidders will run out of money and the 1-bidders make a large profit on what they do win, though it’s not stable against defection (2-bidders win in the 1-bidder-filled environment).
Of course not, they lose to 3-bidders. I wouldn’t consider that “defection” in the same way though, since the 1-bidding is presumably an attempt at coordination and the 2-bidding would be exploiting that coordination and not directly a coordination attempt.
There weren’t any 2-bidders.
Sure, but if 1-bidding were to become popular in similar problems, there would start to be 2-bidders.
What I wrote to abstractapplic:
Yeah, and actually 1-bidding can be a good strategy even from a selfish perspective if you can get enough people to coordinate on it, since a small enough number of high bidders will run out of money and the 1-bidders make a large profit on what they do win, though it’s not stable against defection (2-bidders win in the 1-bidder-filled environment).
But:
are the 2-bidders stable against ‘defection’?
There weren’t any 2-bidders.
Of course not, they lose to 3-bidders. I wouldn’t consider that “defection” in the same way though, since the 1-bidding is presumably an attempt at coordination and the 2-bidding would be exploiting that coordination and not directly a coordination attempt.
Sure, but if 1-bidding were to become popular in similar problems, there would start to be 2-bidders.