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Marc S.Efficent market theory:
Your quote: "Let me put it this way, if the value of the item you were bidding on depreciated from the moment you bought it, would you continue to raise your bid at auction. If you were rational, the answer would be "no.""
If someone anticipated that the value of what they were bidding on would drop, they would not buy it (assuming that they are buying an asset, like a baseball card, as opposed to a drug/medication which is needed today but might go down in price tomorrow). If someone expected that a card worth $100- today would drop to $90 tomorrow, efficient market theory would suggest that the price today would drop to $90 or less. NO ONE in a rational market pays more for an item today if there is relative certainty that it will be less tomorrow.