What a $20 auction teaches about the biggest AI capex wave of our lifetime

LadyAshBorg · x · 2026-09-25

A shared article applies the classic "dollar auction" game — long taught by Harvard Business School negotiation professor Max Bazerman — as a framework to make sense of the AI capex wave, arguably the biggest investment cycle of our lifetime. In the dollar auction, bidders trapped by sunk costs keep bidding past the prize's value; the author argues this dynamic offers the best lens for today's massive AI infrastructure spending race.

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