Subject:
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Re: Proxy ratcheting: How do auction systems work?
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Newsgroups:
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lugnet.market.auction
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Date:
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Mon, 19 Apr 1999 19:47:07 GMT
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Viewed:
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772 times
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Larry,
We pulled our hair out over this one too. In an attempt to be fair - in an
environment that allows both firm and proxy bids - we arrived at the following,
which acts in favor of the existing high bidder in 2 of 3 cases::
Starting bid $100. Minimum increment 10% (rounded up to the whole dollar).
SCENARIO 1
Bidder A bids $100, with a proxy max of $150.
Bidder B bids $150, bid type is irrelevent.
Outcome: A is first to bid $150, A is High bidder with $150, and increment is
ignored.
A is given 'first bid' benefit.
SCENARIO 2
Bidder A bids $100, with a proxy max of $105.
Bidder B bids $100, bid type is irrelevent.
Outcome: A is High bidder with $105, A is 'ratcheded-up' only to his/her
ability, rather than 10% ($110)
A is given first bid benefit.
SCENARIO 3
Bidder A bids $100, with a proxy max of $150.
Bidder B bids $150.01, bid type is irrelevent.
Outcome: B is High bidder with $150.01, and increment is ignored.
A has no first bid benefit - a trade-off for the benefit in scenarios 1 and 2
Isn't this stuff neat? :-)
Derick
Founder & CEO
SeriousCollector.com
In lugnet.market.auction, Larry Pieniazek writes:
> I (as well as all other participants) got a note from Ian Bishop in
> early March about a proxy quandary that had arisen.
>
> Seems he had a bidder that had bid 285 (a winning bid at the time) with
> proxy cap of 300. Someone else subsequently bid 300. Ian awarded
> (rightly, to my way of thinking) the winning bid to the first bidder,
> since that bidder had bid 300 "first".
>
> Makes sense to me.
>
> But consider many auctions run by software. I suspect, but can't
> confirm, that the outcome might be different, at least in some. This is
> based on my interpretation of how I believe they work.
>
> In particular, if you look at bidding history, I think this is how
> AucZILLA works. But I could be wrong, which is why I am asking.
>
> Consider this scenario. 1 dollar minimum bump.
>
> Item starting bid is 10.
> Bidder A puts in a bid of 10 with a proxy cap of 13.
> Bidder B puts in a bid of 11. This exceeds A's current bid, and B gets
> the item "temporarily".
>
> The auction software ratchets A's bid to 12, taking the item back.
> Bidder B puts in a bid of 13. This exceeds A's current bid. B gets the
> item.
>
> No further bids ensue
>
> For the software to allow A to overbid B, A would have to have a proxy
> cap of 14. But A does not. His cap is 13, so the software cannot bid him
> to 14, nor should it. So B retains the item.
>
> Yet A had signaled willingness to go to 13, and had done so well before
> B bid that amount. By rights, the item should have been won by A. He
> "bid 13" first. Had he put in a hard bid of 13, he would clearly have
> been there first under AucZILLA rules, right?
>
> Am I all wet? Does AucZILLA work this way? Do other auction systems? Do
> any work the other way? (that is, when a new bid comes in, the current
> proxy bid is first raised to the new bid level, if possible, to see if
> it was there "first")
>
> Are there examples where that would be less fair?
>
> --
> Larry Pieniazek http://my.voyager.net/lar
> FDIC Know your Customer is wounded, thanks to you, but not dead...
> See http://www.defendyourprivacy.com for details
> For me: No voyager e-mail please. All snail-mail to Ada, please.
> - Posting Binaries to RTL causes flamage... Don't do it, please.
> - Stick to the facts when posting about others, please.
> - This is a family newsgroup, thanks.
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 | | Proxy ratcheting: How do auction systems work?
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| I (as well as all other participants) got a note from Ian Bishop in early March about a proxy quandary that had arisen. Seems he had a bidder that had bid 285 (a winning bid at the time) with proxy cap of 300. Someone else subsequently bid 300. Ian (...) (26 years ago, 19-Apr-99, to lugnet.market.auction)
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