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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Wed, 21 Apr 1999 07:08:24 GMT
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Viewed:
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805 times
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The bidding mechanism also has some new functionality.
Assume the current lot is open with no bids and a $10 minimum. Next, assume it
is an Airport Shuttle - built once.
I make a firm bid of $150, fine. I then make a proxy bid of $400. The net
result is I now have a proxy bid at $150 with a max of $400.
Then the phone bill comes. I'm feeling a bit poor. Now I make a firm bid of
$200. Net result - I have a firm bid of $200. I put a STOP order on my proxy.
Then I win the lottery, and submit a proxy bid of $600. Net result: a proxy
bid of $200 with a max of $600.
I sure hope somebody can appreciate this ;-)
Derick
In lugnet.market.auction, Derick Bulkley writes:
> Larry,
> I must protest! In designing the system, I wanted first of all to allow firm
> bidding - which is an important signialing tool in an auction. But the
> 'common' rules in proxy-only auctions would have bestowed every advantage upon
> the proxy bid, leaving the firm bid all but impotent. I took it upon myself to
> allow an advantage to the firm bid, via the 'disadvantage' to the proxy in • case
> 3. Further, the whole sniping issue is moot: the beauty of the non-timed
> auction is that it promotes the dissemination of information, by ensuring that
> late information - a last minute bid - is not allowed to determine the • outcome.
> Therein lies what I beleive to be the ugliness of timed auctions - they
> discourage bidders from revealing information (how they value a given lot)
> until as late as possible. Don't get me wrong - timed auctions are a • brilliant
> method of creating excitement about otherwise mundane merchandise - it's just
> that I abhor the idea that people believe it is the only way to run an auction
> on the internet.
>
> sorry if the typing's off, it's been a *really* long day..
>
> Derick
>
> >
> > As to Derick's scenario 3, lo these many appends back, I think his
> > system is OK but his rules are broken. Same as eBay, same reason.
> >
> > Derick, change it now while you can, before it gets baked into
> > expectations of many many bidders. Remember, one of your selling points
> > is that you're different than eBay. Cherish that difference. Here is
> > another place for you to shine, brightly.
> >
> > 1 - a point to note (and this relates to libertopia, too...) life is not
> > fair. No system can guarantee fairness under any circumstances (consider
> > major asteroid strikes and their impact on auctions under way, for
> > example). But systems can, and should, do all they can to be 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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Message has 2 Replies:
 | | Re: Proxy ratcheting: How do auction systems work?
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| (...) it (...) proxy. (...) So in a similar scenario to the one Larry's pointed out - if I come along with a $200 firm bid (and a $250 maximum) just before your phone bill arrives, then I don't get the shuttle, and your firm bid shoots up to $250. (...) (25 years ago, 21-Apr-99, to lugnet.market.auction)
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Message is in Reply To:
| | Re: Proxy ratcheting: How do auction systems work?
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| Larry, I must protest! In designing the system, I wanted first of all to allow firm bidding - which is an important signialing tool in an auction. But the 'common' rules in proxy-only auctions would have bestowed every advantage upon the proxy bid, (...) (25 years ago, 21-Apr-99, to lugnet.market.auction)
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