I would guess auctions are popular because there isn't any other option for most. B/M card shops are almost nonexistent because with their overhead. They can't compete with the person who still lives in their Moms basement selling cards on eBay or internet forums.
I think all the auction houses popping up is for a similar reason. There is a lot less overhead running an auction house than a B/M card shop. B/M stores have rent, heat, lights, payroll, ect, ect. and no way to know if anything will be sold. An auction house has no $ in the inventory and they get a % of what is sold no matter if it is for profit or loss to the owner. They also know exactly what and when it will be sold.
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