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Old 04-09-2008, 07:54 PM
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Default Group purchases in REA, Mastro

Posted By: Anonymous

OK - let's change the fact pattern a little bit. Five of us from this board get together and agree that rather than bid against each other for a lot we know that we all want- we agree to let one of us be the high bidder at an agreed price. Now, let's assume our chosen high bidder wins the lot- but we have not made a previous arrangement as to how we will divide up the lot between the five of us. Instead we meet once the lot has been received and we "re-auction" each card individually between ourselves letting the high bidder take each card- with any profit beyond the original investment being split between all of us. That sounds pretty bad- right? So how do we know when a grounp forms- despite their stated good inentions- that this could not actually be what is occuring?

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