₿itcoin ₿ombadil on Nostr: “All-pay auctions are also a valuable way of selling an object when bidders are ...
“All-pay auctions are also a valuable way of selling an object when bidders are interested in the amount of money generated at auction, which is often true for supporters of a charity (and perhaps also partially true for supporters of Bitcoin).
At charity auctions (and perhaps Bitcoin auctions?) bidders are typically interested in both winning the object and raising money for an organization. If all bidders are interested in helping the organization, then the bidders care not just about their expected payoff… But also must reflect that the bidders enjoy seeing the charity (and perhaps Bitcoin?) raise funds…. Therefore all-pay auctions should generate more revenues than winner-pay auctions if such philanthropic effects are present…
At all-pay auctions, benefits associated with any bids tendered still accrue to the participants (of organizations like Bitcoin??), allowing them to ignore such disincentives associated with competitive bidding in winner-pay auctions.”
If you want a deeper understanding for how Satoshi aligned the incentives of Bitcoin to create a positive sum game for all its users, then I encourage all Bitcoiners to study Auctions.”
Quotes from Auctions by Hubbard and Paarsch… parentheticals added by me.
At charity auctions (and perhaps Bitcoin auctions?) bidders are typically interested in both winning the object and raising money for an organization. If all bidders are interested in helping the organization, then the bidders care not just about their expected payoff… But also must reflect that the bidders enjoy seeing the charity (and perhaps Bitcoin?) raise funds…. Therefore all-pay auctions should generate more revenues than winner-pay auctions if such philanthropic effects are present…
At all-pay auctions, benefits associated with any bids tendered still accrue to the participants (of organizations like Bitcoin??), allowing them to ignore such disincentives associated with competitive bidding in winner-pay auctions.”
If you want a deeper understanding for how Satoshi aligned the incentives of Bitcoin to create a positive sum game for all its users, then I encourage all Bitcoiners to study Auctions.”
Quotes from Auctions by Hubbard and Paarsch… parentheticals added by me.