How can you sell a dollar for more than a dollar? Trick people into paying for all bids in an auction. That way, because people don’t understand the notion of sunk costs, they keep bidding to try to minimize their losses, but that generally just compounds them.
If you look at what will become our new federal health bureaucracy (in the event that Obamacare gets through the Senate), you wouldn’t think that a vast expansion of the federal bureaucracy would lead to lower costs (especially when people don’t care how they spend other peoples’ money), but that’s just a trick of the imagination. You see, lots of federal bureaucracies “bend the cost curve” significantly when they take over purchasing. For example, when the military spends $600 on a toilet seat, just think how much more it would cost if it didn’t have negotiating power!