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Re: eBay auction
Charlie Springer wrote:
On Mon, 14 Jan 2008 00:15:36 -0800, Michael J. Mahon wrote
(in article <HcadnXmiZNf_hxbanZ2dnUVZ_tqtnZ2d@comcast.com>):
I watched the last minute of the auction and someone had a very high max
bid
that blocked the snipers who didn't have time to rebid. This is the main
flaw
(for sellers) with eBay. No automatic time extension after each bid.
While I agree that "typical" bidders might be tempted to bid more if
they found that their bid or snipe did not win, this is not the case
for a rational bidder, who bids the highest amount that would leave
him a happy winner and a satisfied loser.
I would guess that if this were reliable, there would be no need for open
auctions at car shows and such where the Mustangs can hit $500,000. Other
auction sites, particularly those with collectibles like fine firearms, have
a 10 minute rule due to demand by bidders. In a live auction the auctioneer
doesn't end the biding because a bell goes off.
I don't deny that many bidders are irrational. ;-)
In the case of truly rare items (for which, by definition, there are
few transactions from which to judge current value) the bidding itself
can be a method by which a bidder learns more about the value of the
item they are bidding on. This could form the basis of a rational
raising of one's "highest bid".
But in a timed auction without extension, making only one bid at the
last moment simply transforms the auction into a "sealed bid" auction,
which is a very common type of auction for valuable items as well.
In most open bid auctions, the seller is hoping for competition and
emotion to raise the selling price irrationally. And this is why
many such auctions result in "buyer's remorse" after the adrenalin
subsides.
If one is honest about setting the highest price they would be happy
to pay, and above which they would not regret losing, and then makes
that bid in such a way that they do not themselves cause a higher bid,
then they will never be disappointed with their bidding.
It's perfectly OK with me that some auctions are not set up to get
the highest possible price for the seller. ;-)
-michael
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Home page: http://members.aol.com/MJMahon/
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