Quote:
Originally Posted by Peter_Spaeth
A study by Gerding, Rogers, Dash and Jennings at the University of Southampton (UK) titled “Sellers Competing for Buyers in Online Markets: Reserve Prices, Shill Bids, and Auction Fees” states, “Another popular type of auction fee is the buyer’s premium, which is paid by the winner of the auction and is a fraction of the closing price … note that a bidder with a given valuation will correct his/her bid … such that the bid plus the fee … is equal to the bidder’s valuation. Interestingly, since all buyers thus lower their bids, the seller ends up paying the fee even though the fee is originally charged to the buyers.”
|
The University of Southhampton? What's the matter, couldn't find a study from Bangladesh? Don't get me wrong, who better to go to for insight on the bidding habits of Americans in the sports memorabilia market than the Brits...after all they were playing the game back when it was still known as BaseRock.
Amazing they know the thought process of "all bidders". Sounds like a thoughtful study.