[Snapolit1]

Wouldn't it potentially make economic sense to have the buyers premium shrink as an item rises in price? For example, the 22% buyers premium is lowered to 15% on items over $100k and to 10% on items that go over $250k and further reduced as items go up the ladder? It seems a shrinking buyers premiums would have the effect of keeping more bidders in the game longer and lead to more bids. At least theoretically I guess.

The calculus from the point of view of the AH would be the reducing buyers premium (it's vig, as we say in on the steeet) would have to be offset by the higher sale price x reduced commission to make it worthwhile.

Maybe wouldn't work. Wonder if it has ever been tried in any large sports auctions?

I got a C in Eco 101 so maybe I'm missing something real obvious.