(mods, if this belongs in “Trade”, please let me know)
I found this fascinating, and I’m really curious to hear what lines thinks of it.
Much has been written about the Vickrey auction from a game theoretic perspective — namely that it incentivizes bidders to ignore other bidders and simply state their own true value — but the auction has other benefits for an ongoing luxury keyboard brand:
The price is set by “the community”, which deflects whining from toxic nerds.
All buyers will likely all pay less than they were willing to pay, which makes ‘em feel like they got a good deal.
The auction yields a full demand curve, including the maximum price each customer is willing to pay and their freaking email address!