Comment by Biater on Bargaining and Auctions · 2012-07-15T23:34:13.647Z · LW · GW

| The dealer should never sell for less than $50, and I should never buy for more than $400, but any value in between would benefit both of us. |

The range is not wrong from just the dealer's perspective. If the exact same table is on sale at the store next door for $10, then the buyer is still making a poor decision buying it for $50 with the first dealer. Of course, if we are talking that in this bargaining game, there is only one seller of tables in the world, and only one buyers, I guess this does not apply.

Of course, maybe the buyer would be better off rethinking how much he values the classiness a new table would bring to his dining room.

Comment by Biater on Rationality Quotes December 2011 · 2011-12-01T04:02:15.582Z · LW · GW

Only if you are wise enough to know that, and wise enough to tell a good tutor from a poor one