6 May
2014
6 May
'14
1:35 p.m.
On Tue, May 6, 2014 at 12:57 PM, Richard <legalize at xmission.com> wrote:
In article <
CAFrGgTSXs7LE1gM_D_dNJ-NUYDFyXMTwiqr94q38_TaWRrxZDA at mail.gmail.com>,
Eric Smith <spacewar at gmail.com> writes:
But due to eBay format, if they snipe, they may not result in making other
people change their bidding behaviror (i.e., their maximum bid), whereas if
they bid early, they may. This is UNLIKE A REAL AUCTION. Therefore an
early bid may result in pushing the final price up more than a snipe, due
to the indirect effect on other bidders.
In other words, early bidding reveals more information to other bidders,
which can change the outcome. If the other bidders are completely
rational, have predetermined their maximum bid, and don't change it, there
will be no effect. However, in reality many bidders don't behave that way.
I'm not complaining about it.
On Tue, May 6, 2014 at 11:07 AM, Richard
<legalize at xmission.com> wrote:
Either way, they will drive the price up to at least their maximum bid
if they don't win.
JUST LIKE A REAL AUCTION.
If they bid early, other people may drive the price up higher, but it
will still be driven up to their early maximum bid if they don't win
the auction. AGAIN, THIS IS JUST LIKE A REAL AUCTION.
When people attend a physical auction with an auctioneer, they may
bid multiple times and they may bid early and in the end the outcome
is always the same: highest bidder wins.
Yeah.
JUST LIKE A REAL AUCTION.
Exactly my point. You had stated that "If they were sniping, they would
drive the price up just the same." I was pointing out one reason why
that's not necessarily true.