posted on July 6, 2004 04:29:45 PM new
Fenix, you’re correct, there’s obviously no financial benefit to shill bidding an auction that hasn’t met its reserve. The purpose of shill bidding in this case is to generate excitement and draw bidders. I’m not justifying shills. But unethical behavior by some should not be justification to eliminate a legitimate auction strategy. I’m sure this is not why ebay is eliminating the reserve however. They obviously believe they (not necessarily us) will make more money without reserves.
Personally, I am not as inclined to pay top dollar with my first bid as I am to hope for a bargain with many low bids; even if I end up at the same spot. Somehow it seems more satisfying. I suppose I like the action -- stupid bidder psychology I guess.
posted on July 6, 2004 05:10:09 PM new
whoops, i thought i had deleted this incomplete post...sorry
myoldtoy
[ edited by myoldtoy on Jul 6, 2004 05:32 PM ]
posted on July 6, 2004 05:31:21 PM new
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"I’m sure this is not why ebay is eliminating the reserve however. They obviously believe they (not necessarily us) will make more money without reserves."
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..ebay most likely will make more...if the reserve auction is dropped, then ebay will double the insertion fee[if we are lucky that's all they will do],
to bring the revenue back...they certainly cant be contemplating "cutting us any slack."
posted on July 7, 2004 09:53:05 AM new
I think that the reason that many are opposed to reserve auctions is on account of ignorance. People fear what they don't understand, and most don't understand reserve auctions. Now, when they see a reserve auction, the fear that something shady is going on kicks in. Does anyone have a rational explanation of why shill bidding would occur on a higher percentage of reserve auctions as opposed to no reserve auctions. I believe it's equal for both. And what exactly is wrong with a "hidden reserve". If someone is inclined to shill bid, isn't a hidden reserve better than an open auction where the seller shill bids the price up to their "reserve". The fact is is that if you are an honest seller, who does not shill bid, then reserve auctions are the only way to protect your investment, and they do work in certain cases.
