But I was actually thinking about something else. Something that is apparently not very characteristic from you...
We are assuming that we are risk-neutral! When we compute what is the minimum offer we would accept on a given day, we are essentially saying
"I will accept anything that is at least as much as what I expect to get if I wait"
If we were risk-averse, we would be willing to accept less: even if by waiting you get, on average, 90€, a risk-averse person would prefer 85€ right now, with certainty.
Maybe we're assuming the value of the phone stays the same through those 14 days?
Good point, that is also an assumption!
But I was actually thinking about something else. Something that is apparently not very characteristic from you...
We are assuming that we are risk-neutral! When we compute what is the minimum offer we would accept on a given day, we are essentially saying
"I will accept anything that is at least as much as what I expect to get if I wait"
If we were risk-averse, we would be willing to accept less: even if by waiting you get, on average, 90€, a risk-averse person would prefer 85€ right now, with certainty.