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by doctorpangloss 2512 days ago
While revenue optimal, growth in retail is eventually driven by psychology, not pricing, since if there’s anything our real economy is good at producing, it’s morons.
2 comments

That's the Bulow-Klemperer theorem. You would rather have more growth (bidders) at the expense of an optimal bidding mechanism.
If actors are humans, then sure. But if actors are rational computers, and it's used billions time a day, you might prefer optimality.

Not saying this would be useful for communication between computers, but coming from CS degree, I have the intuition it could have some use cases.