interesting psychology and dynamics of online auctions

WingedLiberty1957 · February 11, 2013 12:10AM

It's interesting that I have seen this dynamic again and again on online auctions

A coin is listed with a Buy It Now price of $x ... Nobody Bids and the coin languishes for weeks/months ... Then some time later that same coin is relisted as a regular open auction with a starting bid of 99 cents and it ends up selling for MORE than the original Buy It Now price. Funny. There must be something about bidding on something that a lot of other people want (or at least perceived that way).

I have also noticed that when a coin is listed with a reserve price, the coin hardly ever sells -- a few bid but the reserve is never (or hardly ever) met.
I have to admit that I won't even bid on coins with a reserve price anymore after trying a few with no luck in my early days of auction bidding.

tradedollarnut · February 11, 2013 12:13AM

That's why people snipe. Or place nuclear bids in live auctions.

ricko · February 11, 2013 12:19AM

Auctions cause unusual behavior in many people. I have personally witnessed auctions where individuals would bid up to irrational prices when they could have traveled a few blocks and bought the exact same product, new, for less money. Definitely a psychological phenomena involved. Or, maybe, just testosterone.

Cheers, RickO

M · February 11, 2013 12:56AM

Too bad ebay decided to punish the auction format sellers with higher fees over BIN (12% fees vs 8 or 9%). Always liked the excitement of buying and selling in auctions.

rhedden · February 11, 2013 1:14AM

The OP is absolutely right. I have seen many instances of this behavior. It's as if some people suddenly realize during the auction that the BIN was too low. Plus, a small army of shill bidders usually get in on the action once it's a true auction.

Another related situation is where an obviously desirable coin is initially listed with a reasonable Buy It Now, but a low starting bid. Someone invariably bids 99 cents to make the BIN disappear. The coin usually goes for more than the original BIN, and it would not surprise me if the winning bidder passed on the BIN.

ColonelJessup · February 11, 2013 4:27AM

<< .... Or place nuclear bids in live auctions.

>>

Time for you to take a cold shower?

mrpotatoheadd · February 11, 2013 4:39AM

<< I have to admit that I won't even bid on coins with a reserve price anymore after trying a few with no luck in my early days of auction bidding. >>

There isn't any difference between an auction with a reserve and a non-reserve auction that already has a bid.

BAJJERFAN · February 11, 2013 4:56AM

<< It's interesting that I have seen this dynamic again and again on online auctions

A coin is listed with a Buy It Now price of $x ... Nobody Bids and the coin languishes for weeks/months ... Then some time later that same coin is relisted as a regular open auction with a starting bid of 99 cents and it ends up selling for MORE than the original Buy It Now price. Funny. There must be something about bidding on something that a lot of other people want (or at least perceived that way).

I have also noticed that when a coin is listed with a reserve price, the coin hardly ever sells -- a few bid but the reserve is never (or hardly ever) met.
I have to admit that I won't even bid on coins with a reserve price anymore after trying a few with no luck in my early days of auction bidding. >>

The allure of auctions is that one "might" get something for less than it's worth. With a reserve, that just aint gonna happen. Same ting with a high first bid. Unless it's a hot item people figure they can pay list price/retail anywhere.

s4ny · February 11, 2013 5:02AM

I only search auctions with at least one bid. If someone is selling a coin with a start price that
attracts no bids or is a "buy it now" I don't see it.

I only did the BIN thing when Bing was offering additional rewards for Ebay purchases thru
their website. I would contact the seller and negotiate a lower selling price. With the
Bing bonus (10%) and 2% Ebay Bucks and credit card rebates, I was buying NGC MS69 $50 gold buffalo
1 oz coins for a net price below melt.

I bid on over 50 coins in the last 3 days and did not buy any. I am a low ball bidder but
I get some great buys.

Not from 10hans5961 as these 100s of raw coins get very high bids. 35 of my bids were
on his coins.

BAJJERFAN · February 11, 2013 5:02AM

<< The OP is absolutely right. I have seen many instances of this behavior. It's as if some people suddenly realize during the auction that the BIN was too low. Plus, a small army of shill bidders usually get in on the action once it's a true auction.

Another related situation is where an obviously desirable coin is initially listed with a reasonable Buy It Now, but a low starting bid. Someone invariably bids 99 cents to make the BIN disappear. The coin usually goes for more than the original BIN, and it would not surprise me if the winning bidder passed on the BIN. >>

IMO, it's dumb to have a BIN with a low starting bid. If you have a desirable $1000 coin [and you'd be happy with the $1,000] list it for that with a BIN like $1025. The one time I did that, someone ended up paying more than the BIN cuz he was too cheap to see a good deal when he had one in front of him.

ebaybuyer · February 11, 2013 6:31AM

i dont believe there is any way to rationalize ebay bidders. the hopes of getting something for a fraction of its true value seems to inebriate some people. while others will bid whatever it takes just to win