Quote:
Originally Posted by Peter_Spaeth
There is a difference between knowing how much you will have to pay based on your bid, and how much you are willing to pay. The debates about BP usually are about the former; as people have claimed bidders do not take it into account.
|
Is it possible that you’re both right?
I’m not a psychologist, but when it comes to exceeding the amount that we were willing to pay for an item, my experience is that we come up with rationalizations and ways to fool ourselves into thinking that we’re paying less than we really are. Even though we mathematically know that the BP is there, I think we sometimes choose to conveniently ignore it if it means that we can still feel good about our decision to keep bidding.