Automated Auction website
Tramp
Posts: 705 ✭✭✭✭✭
Anyone have concerns regarding shill bidding and now potentially introducing artificial intelligence (AI) into this environment? How do you know that there is actually another human, interested in the same coin, bidding against you and not some algorithm?
I've been watching the website LiveAuctioneers.com and the bidding races to about 75% of the lowesr estimate price range given (which is always inflated) and then after fair warning it hammers down. Not once in 500 lots has it gone over the lowest estimate figure.
Thoughts?
USAF (Ret.) 1985 - 2005. E-4B Aircraft Maintenance Crew Chief and Contracting Officer.
My current Registry sets:
✓ Everyman Mint State Carson City Morgan Dollars (1878 – 1893)
✓ Everyman Mint State Lincoln Cents (1909 – 1958)
✓ Morgan Dollar GSA Hoard (1878 – 1891)
Comments
Probably manipulation.
It's easier to do than to prove.
Best advice is know something about what you want and don't overspend.
No doubt. That's why I've only been observing.
USAF (Ret.) 1985 - 2005. E-4B Aircraft Maintenance Crew Chief and Contracting Officer.
My current Registry sets:
✓ Everyman Mint State Carson City Morgan Dollars (1878 – 1893)
✓ Everyman Mint State Lincoln Cents (1909 – 1958)
✓ Morgan Dollar GSA Hoard (1878 – 1891)
AI or not an actual person will have to pay the invoice…so no concern i believe
Not a concern unless androids start collecting coins. Most auction sites such as eBay allow you to place your maximum bid and their computer will bid on your behalf up to your maximum bid.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Yup. And you don't need advanced AIs to do this. Bots have been involved for more than a decade.
To the OP, why would an auction house push bidding to 75% of an inflated range and end up buying their own coins? The auction company could just Institute a reserve or start bidding at the number.
Understand pricing, know your coins, spend what you can afford. Buy directly at shops or shows whenever possible. Cheers, RickO
LiveAuctioneers is a hosting site for many small local auction venues. Many also are on Proxibid, Hibid and have live audiences. You need to learn about each specific auction company and how they work. Some have access to your prebids and others do not. Some seem to 'buyback' some coins that do not meet what they want and relist item in an upcoming auction.
Estimates for some auction houses are fairly close, others not.
If there are items you are interested in, figure your MAX offer delivered to your home. Subtract shipping estimate (if they will send to you) and buyers premium to calculate your max bid. Place your bid and check after close to see if you won. If you have lots of free time you could win at a lower price if you watched and bid up to your max. Some companies will ALWAYS bid to your max bid or more.
You can call it shill bidding and it probably depends on what state they are in. Reading the terms and conditions usually reveals who has access to your bids.