How much would you pay for a 20 dollar banknote?

In this game a 20-dollar banknote is at the auction. How much would people pay for it? Sounds silly? Well, normally this makes no sense, but in this case, ​the game has a little twist: the highest bidder and the one giving the second highest bid should also pay... this sounds a minor change but it makes a real difference.

^Source
Just look at this video made by the Brain Games crew at National Geographic Channel and see how far people go in such an experiment:

This experiment was originally published by an economist called, Martin Shubik. He wanted to illustrate how we are trapped in completely irrational competitions. In his version, ​a one-dollar banknote was under auction and the average price people would pay for it was 3.40 dollars. (In some extreme cases people paid more than 20 dollars for it!) The game finally always ends up as a "fight" between two persons (same as in the video). Initially, they want to maximize profits, but soon the game turns into minimizing loss.

If you think about it, there are many situations like this in our life. Conflicts where the parties are not paying attention to the needs of the other (and after a while neither those of themselves), just want to take revenge. Or wars where finally both parties will lose are working based on a very similar logic​ than this dollar game. We tend to lose our ability to consider all aspects of the situation if we let our emotions fly high.