Re: Game Theory Question
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Scenario 3: Non rational players. Anything goes I guess. I would make some guess as to the players non rationality. The less rational they seemed, the lower I would bid. I would suspect that the very least rational might try to bid something like $50, so maybe I would bid $100. In real life, though, I think I would bid around $400 (against 1 opponent), suspecting that they would bid lower than that and not be rational enough to raise their bid.
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No, no no. You bid $500 and still pay only what they bid, no matter if it's $50 or $499 or what.
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