Auctioneer’s Wet Dream – two, or more self-doubting bidders; the more the more the higher the fluid volume.
The inability of a bidder to establish the value of something, WITHOUT being influenced by others, must generate billions for ebay, as well as other auctions, and all forms of merchandising. After all, isn’t nibbling and bidding wars a symptom of the AWD (no – not All Wheel Drive)? Additional evidence of AWD can be found in such phrases as “auction fever” and “buyer’s remorse”.
Whether the BIN drops after one bid, or the price reaches 70% of the BIN, the potential problems are, and has been:
1) What happens if the bids go beyond the original BIN amount?
2) What happens if someone BINs and “I” lose out on the buy of the century?
2) How will an indecisive bidder determine if the BIN is “fair” without other bidders to TELL them?
If someone knows in advance that they would be willing to bid $60 should other bidders (including deep-pocketeers) “think” the item is worth that much, then only an irresolute bidder would hesitate to take advantage of a $40 BIN.
The 70% feature will require a greater bid amount to remove the BIN (somewhat like a reserve), which may cause these auctions to close at a higher price. It may also encourage more bidders to BIN to avoid a potentially higher price.
The issue with auctions, as with any purchase is: WHAT AM I WILLING TO PAY? I understand that we would all be MORE willing to pay less, as all sellers would be MORE willing that we pay more, but as long as we’ve established an item’s value which has been determined by the individual, we have the disposal income, and the bank isn’t about to repossess the house (it’s a subjective call), then shouldn’t we purchase the item? (that’s called a rhetorical question as I’m REALLY not looking for disagreement – like most people that ask a question.)
We’re more concerned about the opinion of others to determine the value of an item/service then we are about our opinions. THE BIG SHAME: I paid too much - just a notch below sex offender.