Quote trap: Thousand dollar bills auction games

The $1000 bill actually took 2050 yuan. Why?　　This is the trap of quoting.　　█/Ye Chuhua financial writer at a cocktail party, James pulls out a thousand-dollar bill from his pocket and announces to all the guests: "He's going to auction this thousand-dollar bill to the highest bidder, and we'll bid on each other for 50 dollars, until no one increases the price." The highest bidder could get the thousand-dollar bill, but the second highest bidder would not only get nothing, but would have to pay James for the price he had opened. We can assume that if the bid is higher than 1000 yuan, then even if the thousand-dollar bills, the bidders still suffer. As a result, all bids should be below 1000 yuan.　　But that is not the case. This innovative "money to buy money" auction, immediately attracted everyone's interest. At the beginning, the "100 Yuan", "150 Yuan", "200 yuan" bid sound, and to the price raised to "500 yuan", the pace eased down, leaving only three or four bidders in the bidding.　　Finally, sticking to the last, only Tom and Mike were there at loggerheads. When Tom shouted "950 Yuan", James played a bullet in his hand that thousand-dollar bills, vaguely looking at Mike, Mike seemed to blurted out without hesitation: "1050 yuan!" There was a little commotion in the hall. James turned proudly to Tom, waiting for his fare increase or exit, and Tom gritted his teeth and said: "2050 dollars!"　　"There was a greater uproar in the crowd, and Mike waved his hand and drank a cocktail, saying that he withdrew from the" Crazy auction, "and everyone breathed a sigh of relief. As a result, Tom paid 2050 yuan to buy the thousand dollar bill, and Mike paid 1050 yuan for nothing.　　The two were equal, and the loss of 1050 dollars was included in James ' pockets. Why did it end up being such a result? This is actually a game model.　　The model, designed by Subik, a financial economist at Yale University, is called the Sotheby's auction model, also known as the Subik experiment. Sotheby's found that when it comes to choosing the right time and place, the number of people competing in the game, and each of them making bids independently of each other, the auctioneer always succeeds in experimenting and earning profits.　　Because the participants in the game want to be the last winner and continue to bid, the final auction price will be far beyond the value of the object itself, even if the final winner, obtained the subject matter, is still a loser. This model is analyzed by the backward-pushing method of economics and game theory. If all the people involved in the auction were rational, the winner in the final round is only a little less than the second-last, but loses more than the third-round, and so on, his bid is in the top two or the first round of the 0 loss will be the least, Then his rational decision is not to participate in the auction. Similarly, the unfortunate bid of the second highest bidder's rational decision-making is likewise. Finally, the equilibrium solution of the game model will be that no one is involved in thisA game. But when other people are rational people, but there is an irrational person, the irrational bidder can be the lowest bid to get the subject matter, to earn the greatest profits. Things in the world are so contradictory.　　In fact, the economic behavior of people in real life is not like the assumption of rationality or the pursuit of profit maximization, but the irrationality of cognition deviation. The social psychologist Tiger, who has analyzed the people involved in the thousand-dollar auction game, finds that those who fall into the trap usually have two motives, one economic and one interpersonal. Economic motives include the desire to win thousand-dollar bills, to win back his losses, to avoid more losses, and interpersonal motives including the desire to save face, prove that he is the best player and punish opponents.　　Thousand-dollar bills are an obvious bait. The first stage of the quote, the quote person chasing the profit margin. Everyone sees a significant economic benefit and enthusiastically quotes, the idea has continued until the bidder's offer close to the value of the auction.　　Although in this process, some bidders have found themselves in a trap, but can not be all over, they have invested quite a lot, if the exit at this time, upfront investment will have nothing, therefore, only to increase investment in order to get rid of difficulties. In the second phase of the offer, the price of this phase is primarily to reduce losses. When the quoted price is more than the value of the auction, it will continue to report, because considering that although the price is higher than the value of the auction, but if you get the auction, the loss is less.　　So in this reasoning, bidders in the trap more and more deep, unable to extricate themselves, finally paid a greater price. When the bid equals the bonus, the competitor begins to feel anxious, uneasy, and finds himself stupid, but has no choice.　　When the bid is higher than the bonus, no matter how hard they are lost, but, in order to save face or punish each other, he sacrificed to raise the price, so that opponents lose more seriously. People who want to auction money almost never fail to make money from the auction.　　It was a life-trap, and Mike and Tom, who were bidding on it, sank deeper into the trap, unable to extricate themselves, and finally paid a painful price.　　Since ancient times, human traps for the killing of animals, usually have the following three characteristics: 1. There is an obvious bait; 2. The path to the bait is one-way and can not be out; 3. The more you want to break free, the deeper it gets.　　The size trap on the road of life is much the same.　　Life is full of traps.　　In daily life, big to market competition, small to wait for the bus, there are traps waiting for you.　　For example, the bus is usually 15 minutes, when you spend more than 10 minutes waiting time, you start to get restless, but usually you wait until the bus is over 15 minutes away and you start to feel sorry for it-you should have walked or taken a taxi 15 minutes ago. But usually you will continue to wait, because you have invested so much time, unwilling to take a taxi now, the result is deeper, noGet out of the way until the bus is late and your psychological predicament is relieved. But there are many goals in life, not like the bus that is bound to come, and the investment is not your personal time.　　How to avoid falling into a trap on the road of life is also a very small learning, psychologist Rubin's suggestion is: 1. Establish the limits of your commitment and the prior agreement: such as how much money or how much time to invest?　　2. Once the limit is established, it is necessary to adhere to the end: for example, the invitation to the opposite sex, the self agreed to give up once refused, not to five times inside there are three times refused to give up.　　3. Make up your mind, do not have to look at others: it turns out that two strangers together waiting for the bus, the opportunity to get out will be greatly reduced, because others are waiting!　　4. Remind yourself of the cost of continuing to invest.　　5. Stay alert. These methods may be known, but easier, once you fall into the trap of life, it is not easy to get away. Do not know the truth, only the body in this mountain. If you want to avoid this kind of life of the trap, we should always jump out of five elements, not to be a temporary part of the interests of the entanglement, but not for the clouds to look at the eye, the length of the scenery should look at the amount. So, this is a personal practice!