A few thoughts on REA bidding

[M's_Fan]

REA is a great company that does a lot of things right. So I'm not a hater. But I do think they could improve things with their bidding system.

I have two observations about REA's bidding system:

1. I wish the slots weren't so wide apart. It is sometimes the case that I would raise the current bid, but the next slot is more than I want to pay for the card. There is no in-between. The result is this forces the bidder to make one of two choices: (1) Decide you want this card so much, you'll overpay for it, and bid into the next slot even though you would prefer to bid less, or (2) you decide you don't want to overpay, so you don't bid at all. This leads to the following result: (1) some auctions go for more than they would have otherwise (with a smaller gap between slots), because bidders are forced to bid according to REA's wide slots, or (2) the auction goes for less than it might have, because bidders walk away rather than overpaying for the card.

I think that situation (1) happens about half the time, and situation (2) the other half. If REA would narrow the gaps between bids, their auctions in the aggregate wouldn't go for less, they would just be priced more accurately (some lower, some higher).

2. My biggest complaint, however, is that the "autobid" slot is set to TWO slots ahead of the next bid. For example, a Babe Ruth card currently has the high bid at $10,000. You can bid $11,000, or you can "autobid" for $13,000, but you can't bid and occupy the $12,000 slot. Even if you bid $11,000, you can't raise your own bid to $12,000. So you either bid $11,000 or $13,000. Let's say the same card sold in a recent auction for $11,500. You are willing to bid $12,000, but you don't want to overypay by $1,500. Let's say you bid $11,000. Once you bid $11,000, someone else can take the $12,000 slot, but not you. Let's say that someone else does take the $12,000 slot. You now have to bid $13,000, or lose. The auction ends, and you lose, tough luck. You wanted to bid $12,000 on the card, but you couldn't.

The situation described above has actually happened to me in last year's REA auction. I remember thinking at the time, "Next year I got to get my bids in early to occupy the slots I want!" I then started thinking how ridiculous it is that I'm forced to think like this.

Anyone else agree or disagree?

I just wish they would do an eBay style system, where you can enter in whatever amount you want to bid. Add the waiting period to prevent sniping, that's fine if they want to do that. But the slotting system and autobid system they have set up very often does not allow a bidder to accurately bid what he/she thinks the item is worth.