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by mistermann 3358 days ago
Why would you start high, that's going to maximize your cost not minimize.
2 comments

Because people are selfish and might volunteer to get 800 for themselves rather than let some other guy get 1200 (even if 1200 is the legal maximum).
No, if you start low, people might basically implicitly "conspire" to keep their hands down, and when the first "breaks" the cartel at some high price, all hands will shoot up.

Better to reverse auction until only 4 hands are left. It should end up cheaper (and fairer, incidentally, as it will closer to true preferences)