A. When bids for an item are based on estimates of the item's value, the winner is the bidder who overestimates this value the most.
B. Intuitively, most people bid more aggressively when faced with more bidders, but more aggressive bidding increases the chances that a bidder will fall victim to the winner's curse.
C. The mathematical explanation for the winner's curse, first observed in bidding for oil fields, reveals the subtle intricacies of this apparently simple game.
D. The classroom experiment demonstrating the winner's curse illustrates the complex relationship between game theory, human intuition, and optimal decision making.
A. When bids for an item are based on estimates of the item's value, the winner is the bidder who overestimates this value the most.
B. Intuitively, most people bid more aggressively when faced with more bidders, but more aggressive bidding increases the chances that a bidder will fall victim to the winner's curse.
C. The mathematical explanation for the winner's curse, first observed in bidding for oil fields, reveals the subtle intricacies of this apparently simple game.
D. The classroom experiment demonstrating the winner's curse illustrates the complex relationship between game theory, human intuition, and optimal decision making.
The correct option is C DABC
The clue is to establish the first sentence. The first sentence makes a comment and the rest just go on to justify the comment. Thus the paragraph should start with D which lays the premise that a few people wanted to start a theatre movement but their approach was different. A has to precede B because of the reference of Yeats in A. C has to follow B because of the mention of Martyn in B.
Hence the correct sequence is DABC.
DABC
The clue is to establish the first sentence. The first sentence makes a comment and the rest just go on to justify the comment. Thus the paragraph should start with D which lays the premise that a few people wanted to start a theatre movement but their approach was different. A has to precede B because of the reference of Yeats in A. C has to follow B because of the mention of Martyn in B.
Hence the correct sequence is DABC.
