Saturday, August 31, 2013

Storage Wars Strategy: Vindictive Bidding?

I'm in my hometown visiting family right now, so I have access to cable TV. Watching Storage Wars on A&E, saw one of the bidders (Jarrod?) say something like the following:
Yeah, I don't want this locker. But I'm going to bid on it to spend their money!
Just sounds plain mean. Why would you want to hurt the business of your peers?

One explanation: maybe if a newcomer enters the auction and loses money, they don't come to the next one, so you get better prices in the future. But, if you believe in the Revenue Equivalence Theorem, number of bidders is not important to the final price paid.

Three possibilities: either Jarrod is ignorant about his own business (unlikely), a vindictive person (couldn't say), or some assumption of RET has not been met (highly probable). In any case, economics continues to make reality television a bit more fun!

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