Look, Pat, First Rate got that contract fair and square.

Let's look at these cases a little bit more carefully and figure out what's going on.

So you don't want to bid more than what it's really worth to you.

Ninety nine pence was the starting price and no reserve.

But since we're working with money and we're working with dollars, we should just round to the nearest penny.

On the other hand, if you bid down here, and if c snuck in in between what your bid is and what the valuation is, then you've lost the auction, and you get a zero, but you should have won or it would have been worth your while to win because the price still would have been a bargain to you.

You'd end up with a negative utility.

And just so that we get some of the other details that we see here, this bid right here, this is what someone has explicitly said that they are willing to pay for a share.

If you ever think about it, pricing that you negotiate yeah, we kind of have this price on paper, but that's just the starting point of the conversation.

The price of admission.

How could you have prices that kind of move?

And we see that the last trade here was for 2.58.

That says that the rational strategy, the dominant strategy in second price auction, is to bid your true value and that makes it a truth revealing auction mechanism.

Then auctions like eBay are another example of dynamic pricing.

Later it came up on Ebay again!

And then they would take a loss.

So technically I guess prices can be rounded off to the nearest cent.

It has been made possible, by the way, for certain other different reasons.

It's not about low cost.

I could actually price on specific customer segments or on features I know they need.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

And that tells you that the book value per share is 4.

Let's say a guy invents a better light bulb.

The price does not include the case.

Delivery is not included in the price.

Delivery isn't included in the price.

This is the first day of trading, this is your IPO price.

Do I have to pay 100?

Price

So I'm just taking huge losses and Vikram is taking huge losses, right?

The market drop has cleaned me out.

And that's interesting.

Commodity tax is not included in the price.

The price doesn't include consumption tax.

Can you give me a better price?

And if each one of you sends it to 300 or 400 people, that would be fantastic.

I said the price doesn't tell you much.

(Laughter)

And this is very relevant to what's going on in the world today.

They pay 1 million.

If you expect the future price to go up and the good or the product in question is something that you can store, well, depending on how much you expected to go up, you're probably more likely to buy now buy before the price goes up.

Because batteries life cycle improve a bit of improvement on energy density, which reduces the price.

It is traded.

So, and maybe in particular the people who were going to buy this car at any given price point

It's the best price that someone's willing to give you for something.