Subject:
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Re: When is "Not an Auction" really an auction?
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Newsgroups:
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lugnet.market.theory
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Date:
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Thu, 2 Dec 1999 08:39:04 GMT
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Viewed:
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292 times
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> This isn't an auction? It sure is the heck isn't a sale for pete's sake!
My personal opinion is that it's not an auction, for the following reasons:
1) You have "1 seller and multiple (potential) buyers". But, hey, this is a
generical market law, almost everything someone decides to sell is available to
buy for many other people, at least in theory, and price is determined usually by
the market itself. Even when you say "I sell a Metroliner at $300" you are
offering it to many potential buyers.
2) You have no cognition of what the other offers are. (this is common to Sealed
Bid Auctions but, as Todd says, SBA are degenerated cases of auctions, or at least
very particular cases of auctions)
3) You have a single communication stating the conditions of the item to-be-sold,
and then no other updates. You can simply email people saying that their offer was
too low, but I'd never accept a raising on price offered after such an email.
4) Time is not important. In auctions, time is really a relevant factor (e.g. for
eBay), and bidders often make their offers in the very last seconds, while in
best-offer-trading time doesn't matter (you have a few days to make your offer,
and to think on price you're gonna pay, time is considered only in case there are
two or more offers for the same price, just to resolve the dispute).
5) Psychological factor is not so important. In auctions, you tend to raise your
offer far from what you really want to spend for that item. It's completely
different in OBO trading.
In conclusion, there are some common task between auctions and best-offer-trading,
but this doesn't signify that the two thing are the same...
Giulio
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Message is in Reply To:
 | | When is "Not an Auction" really an auction?
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| Be warned: serious ranting below. I'm awfully tired of notices posted to marketplace.buy-sell-trade, stating something like: "big Lego for sale.. ...this is NOT an auction... ...highest offer received after..." etc. This isn't an auction? It sure is (...) (25 years ago, 1-Dec-99, to lugnet.market.theory)
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