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#16
01-14-2015, 07:24 AM
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I think one reason auctions are popular is because the alternative, direct sale, permits the seller to seek far more for the item than its fair market value. Just take a look at eBay now that it is predominated by BINs. The amounts sought by sellers typically far exceed VCP values. Auctions, with all their flaws, at least hold out the prospect of a buyer paying fair market value.
Of course, once a person 'overpays' via direct sale, he's then stuck with the item as he is unlikely to recoup his investment except by a similar direct sale. 
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