> > The Agony of Victory: Online Auctions and the Winner's Curse
> >
> > By Bruce Gottlieb
> >
> > snip
>
An extremely one-sided view, in my opinion, it makes many false
assumptions, like each bidder has zero knowledge of the others bidders
tactics and bids. I personally have not bid on products when "certain"
people have the current high bid, I know their max bid is probably very
high, so I don't bother. (result is a high bidder underpaiding). I wonder if
anybody else does this?
I would also guess that many cases exist where all bidders bid below
the "fair future value". It has to happen, no one knows the future. In fact,
all people who bid on the first Altairs auctioned on Ebay all bid below the
fair future value(where today is the future). No?
Ebay may seem a sellers market to a buyer, but go ask a couple
dealers and you will get another story. The fact the auction ends at a
specified time without a doubt lowers the final auction price, this does not
occur in a live auction, in live auctions bids are taken until all bidders
have reach their maximum bid. Collusion is also common on Ebay, and unlike
real auctions is not enforced even if discovered. The grass is always
greener on the other side ..
For an excellent discussion on auctions, live and online, read about
auctions from a real dealer
http://www.mermac.com/auction.html
steve
Received on Mon Mar 22 1999 - 16:23:22 GMT