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	title of this thread your message Game theorists, i.e., scholars who try to find formalizations that describe and predict equilibrium tendancies of two or more players in competition, given an opportunity set of plays, incentives, risks, rules, etc., presently think auctions tend to optimize the extraction of cash from buyers. In an auction, there are many potential bidders in the room at the same time and their intermediary--the auctioneer--has one purpose--inciting bidders awareness of latest price and competitiveness of acquisition in order to heighten bidders tendancies to let their both their reasons and passions propel them to the highest bid possible. Also, a seller in an auction makes a firm commitment to sell the day of the auction, even if a minimum price is required. This commitment by the seller takes away any need on the part of the auctioneer to get seller and buyers to compromise in order to make the transaction occur. The transaction is going to occur, if the minimum bid is high enough. This clarity of information makes auctioneer and bidders act much more on the competition of bidding rather than the compromise of negotiation. Higher price is observed to result. Now compare this with transacting through a real estate agent. Real estate agents also seek to bring the seller the bidder with the highest price, but out of self interest cull the bidders for those that the agent believes are most likely to actually transact. The agent is trading off maximum price for increasing probability of transaction and making a sales commission. This bias in the real estate agent game tends to suboptimize price, while heighening probability of transaction. Further, a real estate agent tends to reduce the game to one buyer and one seller and then work very hard to find common ground between buyer and seller; i.e., to get each to compromise on price in order, again, to optimize the probability of a transaction. associated web images (optional) associated web link (optional) your email your password create a forums account \| you forgot your password?