From the Kind-of-Obvious Department (as well as the Everyone-Else-Is-Talking-About-It-So-I-Might-As-Well-Too Department): USA Today had an article this week about how South Korean physicists have used mathematic modeling to prove that 'sniping' on eBay auctions works as a successful bidding strategy.
For those unfamiliar with the term, 'sniping' is the practice of not bidding in an online auction until the last few seconds before it closes.
You can do it manually, but there are also programs (such as the free jBidWatcher, which I've used and like, though your mileage may vary) and online services (both free and paid) that take the tedium out of it.
Why does sniping work? If every bidder on eBay were a rational bidder (rational in the game theory sense, it's not a value judgement), it wouldn't.
The way eBay auctions work, you're supposed to enter the maximum amount you'd be willing to pay, and eBay will automatically raise your bid for you until you hit your limit (this is called proxy bidding).
The problem is that irrational bidders do silly things, like not enter their maximum bid at the start (remember, it's hidden), or get into bidding wars and go over their "maximums." This provides an opportunity for people who snipe to save money when they go against irrational bidders -- it won't really help if you go against other rational bidders. (The article also mentions how sniping can be good for sellers, too.)
The Slashdot discussion thread has some good angles on this. (FYI, on Slashdot threads and other message boards that feature moderation levels -- where users can vote or rate the quality of other people's comments -- I usually browse at a middle level, like posts rated 3 or higher on a scale of -1 to 5... it tends to filter out the flames, trolls and trash posts.)
Anyway, if you bid in online auctions, check it out.
Thanks -- Joe
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4 comments:
Just to let people know, a lot of people, including me, have been receiving fake emails from eBay. My account was hacked into. If you are a member and you receive an email, check your My eBay before clicking on any links. If the email is real, a copy of it will be there. If it's not, send it to spoof@ebay.com
Sorry to hear about the other commentator's misfortune. Any genuine email from eBay will have your registered full name in it, that you supplied on registering. If it just says "Dear Customer", or something likewise, bin it. Read advice on the eBay site about security - and apply this to any on-line money activity (banking is a prime example) you are engaged in. I'm being bombarded with dozens of fake eBay and emails from banks I'm not with each month. Please ensure you know how to spot a fake - it could cost you VERY DEAR if you can't. If you suspect you've fallen for a fake, immediately advise the site or organisation (bank), withdraw the creditcard and make it impossible for anyone to use your account info.
Even if you receive an email that you think MIGHT be legitimate regarding any financial transaction, don't click the link provided, go to the website in question by entering the correct name or url in the search box.
Exactly. Never click the link in the email. LOL I get those spams, phishing ones all the time. Somehow they also slip past AOL's spam filter and the legit ones ended up in spam folder.
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