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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Fri, 23 Apr 1999 03:50:05 GMT
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Viewed:
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868 times
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In lugnet.market.auction, jdiri14897@email.msn.com (John DiRienzo) writes:
> > [large bid jumps]
>
> OK. This is a psychological thing as well. Which can be harmful to the
> seller's cause. If an auction has been running its course, and is on its
> last day, with only one bid, other possible bidders may believe it is not
> a good value, since seemingly no one wants to bid on it. Giving the buyer
> this manipulative skill may be pleasant for the buyer who can weild it,
> but if its allowed, and it hurts a seller, it may hurt the auction site,
> too.
I think what ultimately hurts an auction site (or any site, for that matter)
is not giving people the features they want.
How many IRL auctions have you -ever- heard of that -didn't- allow large bid
jumps? The kind of jumps that cause the entire room to go silent -- all
mouths agape -- or cause everyone to go "ohhhhhhhh..."?
"Five thousand pounds."
"Six thousand pounds."
"Seventy-five hundred pounds."
"Ten thousand pounds."
"Twenty thousand!"
"Twenty five thousand pounds!"
"Fifty thousand!"
"One million pounds!"
How long have IRL auctions been around to perfect and standardize the
general methods? 50 years? 500 years? 5000 years?
For how many millenia have arbitrary jumps been a natural part of auctions
and of negotiating in general?
Why do you assume that a large bid jump (to scare off other bidders) results
in a lower final selling price than the price would have settled at under
slow climbing? Maybe some scary bids are much higher than they need to be.
(A good player will err on the safe side and bid ~20% higher than he thinks
is absolutely necessary.)
I once held an auction in 1994 where I sold a copy of 6012 Siege Cart.
Opening bid was something like $6. It quickly went to $8, then to $10, then
$12, $15, $20, $25, $30, $35, $40, $45, $50, then $55, and then in one final
brilliant moment one of the final two bidders bid $101. This completely
scared away the other bidder, who later admitted that he was just about to
call it quits at $60. So here's a case (albeit extreme) where the final
price was roughly 40% higher than it would allegedly have climbed had there
been a cap on the maximum increment.
Put that in your pipe and smoke it. :-)
--Todd
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Message has 2 Replies:
 | | Re: Proxy ratcheting: How do auction systems work?
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| (...) I must say that things like that are what make real life auctions exciting. What's even more exciting is when the huge jump DOESN'T stop the bidding... (...) While not as large an excess bid as the examples you mentioned, I just participated (...) (25 years ago, 28-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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| (...) if (...) their (...) any (...) Yes, but, psychologiaclly, this could be detrimental for the bidder, in that people may bid too much, thinking they can always change later. Not having such an option, people must give greater consideration to (...) (25 years ago, 21-Apr-99, to lugnet.market.auction)
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