Economics
14 breaks
Prices, incentives and why markets do what they do.
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The winner's curse: why whoever wins an auction has usually overpaid
In 1983, MBA students bid on jars of coins worth exactly $8. On average they underestimated the jars, guessing $5.13. Yet the winning bids averaged $10.01, so…
Why shared fish, fields and water get used up, and how some places don't
When something is shared and nobody controls it, taking a bit more is always worth it for you. You keep the whole gain; the damage is split among everyone…