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Posted By: barrysloate

Bill- in your example the auction house gets a fixed commission, so they can clearly measure their gain. It is called their net profit.

The result for the buyer is more abstract. One buyer might pay $1000 for item A and feel he overpaid, while another may pay $1500 for the same thing and brag to his friends that he got a great deal. I guess that is the utility curve.