We discuss auctions. We first distinguish two extremes: common values and private values. We hold a common value auction in class and discover the winner’s curse, the winner tends to overpay. We discuss why this occurs and how to avoid it: you should bid as if you knew that your bid would win; that is, as if you knew your initial estimate of the common value ... Show More
Jun 2018
Lecture 22
- Repeated Games: Cheating, Punishment, and Outsourcing
In business or personal relationships, promises and threats of good and bad behavior tomorrow may provide good incentives for good behavior today, but, to work, these promises and threats must be credible. In particular, they must come from equilibrium behavior tomorrow, and henc ... Show More
1h 15m
Jun 2018
Lecture 21
- Repeated Games: Cooperation vs. the End Game
We discuss repeated games, aiming to unpack the intuition that the promise of rewards and the threat of punishment in the future of a relationship can provide incentives for good behavior today. In class, we play prisoners’ dilemma twice and three times, but this fails to sustain ... Show More
1h 15m
Jan 2016
Going Once, Going Twice: Auctions (Part 1)
The Google AdWords algorithm is (famously) an auction system for allocating a massive amount of online ad space in real time--with that fascinating use case in mind, this episode is part one in a two-part series all about auctions. We dive into the theory of auctions, and what ma ... Show More
12m 39s
Aug 2020
396: Post-COVID-19 Investing and Landing Great Deals at Auctions with David Osborn and Aaron Amuchastegui
No one knows where the real estate market is headed next... but with an estimated 30 million Americans out of work, wouldn't you like to know how to buy foreclosed properties, step-by-step?That's what you'll learn today, from two investors who have completed over 1,000 deals each ... Show More
1h 34m
Oct 2023
826: 5 Steps to Get ANY Home Offer Accepted (WITHOUT Being the Highest Bidder) w/Christian Bachelder and Lindsey Iskierka
The 2023 housing market may be the “toughest real estate market” we’ve ever experienced. But, after this episode, we bet your home offer will get accepted, even during a wild seller’s market, even if you’re not offering the highest bid, and EVEN if this is your first time buying ... Show More
1h 5m
May 2020
Bidder Beware: With Guests Max Bazerman & Glenye Cain Oakford
Have you ever bid in a competitive auction—say, on eBay—and won the item, only to see a similar item for sale elsewhere at a lower price? If so, you may have fallen prey to the winner’s curse.In this episode of Choiceology with Katy Milkman, we look at bias that can lead people t ... Show More
34m 11s
Jan 2024
Mastering the Value Sale with Ian Campbell, Ep #427
Where does value fit in the sales funnel? How do you structure your value proposition? The value discussion is often the most difficult conversation for salespeople to have. They like to employ likability, authority, and trust. They can’t always wrap their heads around value. But ... Show More
26m 14s
May 2022
234: Domer – The Information Edge: Winning in Prediction Markets
While many are only hearing about prediction markets for the first time, for near a decade, anonymous trader Domer (@Domahhhh) has been at the frontier of profiting from outcomes of unknown future events. Political and economic matters are Domer’s specialty, although he doesn’t s ... Show More
57m 2s
Apr 2020
How To Close Everyone: Downselling like a Pro | Ep 201
Make the customer feel like you are accommodating them in every way possible. Today, Alex (@AlexHormozi) talks about how reciprocity is one of the greatest persuasion tools when it comes to downselling, how to get your customer to genuinely say yes to your offer, and why your wor ... Show More
12m 55s