Auction house bid increment thoughts

[HotSpringsBaseball]

I agree with Leon, as buyer and cosigner, smaller increments end up making more money. Why? When bidders are not forced to increase a bid by multiple hundreds/thousands of dollars, they are more likely to keep bidding and it also allows for potential "new" bidders who would not have bid in the first place if higher increments were in place.

[frankbmd]

With smaller increments you wouldn't have to worry about auctions ending at 4AM either. They would go on for days (weeks, months).

Imagine the REA 2015 auction still being open when the 2016 auction begins, as that Wagner creeps over the $2 million mark in $5.00 jumps.

[egbeachley]

Originally Posted by HotSpringsBaseball

I agree with Leon, as buyer and cosigner, smaller increments end up making more money. Why? When bidders are not forced to increase a bid by multiple hundreds/thousands of dollars, they are more likely to keep bidding and it also allows for potential "new" bidders who would not have bid in the first place if higher increments were in place.

I disagree with this premise, it evens out in the long term. You never know if the winning bidder who just went up 10% would have won it with a 1% bid increment because the under-bidder was already at his max.

I know I've increased a full increment (say 10%) when I really wanted to go up a 1/2 increment (say 5%) or less knowing that I was likely going to win it at that level.