> What if the auction gets resolved at a random (uniformly distributed) point in time in some small time interval?
I'd put in lowball bids and ludicrous (but plausibly deniable) offers and wait for the unreasonably-short windows.
The solution to this problem is people not wanting immediacy. (Same with scalpers.) But people like immediacy. Unfortunately, there is also political capital in railing against those who provide that immediacy. In a way, it's a stable socioeconomic system: HFT provides liquidity, market partiipants take it, activists rail against it, regulators complain and win the activists' favour.
I'd put in lowball bids and ludicrous (but plausibly deniable) offers and wait for the unreasonably-short windows.
The solution to this problem is people not wanting immediacy. (Same with scalpers.) But people like immediacy. Unfortunately, there is also political capital in railing against those who provide that immediacy. In a way, it's a stable socioeconomic system: HFT provides liquidity, market partiipants take it, activists rail against it, regulators complain and win the activists' favour.