Different bidding patterns

[Vintagedeputy]

I have said this before, but I am perplexed by how people bid on auctions in general. I cannot understand why bidders will bid something up day after day and keep raising the price. Is it a testosterone thing to say you have the highest bid?

If I want to win an auction, you’ll never know it until the closing seconds. I’ll fire my max bid at the end and will more than likely win.

[Snowman]

Originally Posted by Vintagedeputy

I have said this before, but I am perplexed by how people bid on auctions in general. I cannot understand why bidders will bid something up day after day and keep raising the price. Is it a testosterone thing to say you have the highest bid?

If I want to win an auction, you’ll never know it until the closing seconds. I’ll fire my max bid at the end and will more than likely win.

I think that some bidders just reason that everyone has a maximum amount they will pay for an item, and if they want to win they're going to have to outbid them all anyhow, so they might as well just bid now. Especially if they think there's a chance they might not be available for bidding on the night the auction ends. I've certainly done that before. Though it's not my regular approach.

[Peter_Spaeth]

Originally Posted by Snowman

I think that some bidders just reason that everyone has a maximum amount they will pay for an item, and if they want to win they're going to have to outbid them all anyhow, so they might as well just bid now. Especially if they think there's a chance they might not be available for bidding on the night the auction ends. I've certainly done that before. Though it's not my regular approach.

Most people don't have that discipline, and if they can win an auction for one or two levels above what they thought was their max, they'll go for it and rationalize it, especially if tired or inebriated. I see no benefit to pushing up the price early.

[raulus]

Originally Posted by Peter_Spaeth

I see no benefit to pushing up the price early.

My guess is it’s mostly a flex when it happens.

You want to top my bid? I crap bigger than you!

[frankbmd]

Originally Posted by Peter_Spaeth

Most people don't have that discipline, and if they can win an auction for one or two levels above what they thought was their max, they'll go for it and rationalize it, especially if tired or inebriated. I see no benefit to pushing up the price early.

Consignors benefit from auctions that encourage and provide extended drinking time.

[Snowman]

Originally Posted by Peter_Spaeth

Most people don't have that discipline, and if they can win an auction for one or two levels above what they thought was their max, they'll go for it and rationalize it, especially if tired or inebriated. I see no benefit to pushing up the price early.

Certainly from a game theory viewpoint, if spending the least is your goal, the optimal strategy is to wait until the last minute to place your bids and hope your competition either times out or drops out. But spending the least isn't the top priority for all bidders. One thing I learned when researching how to solve the eBay shill bidding problem is that legitimate paying bidders implement all sorts of seemingly nonsensical bidding strategies that would look like suspicious activity to most "normal" bidders.

Don't get me wrong, shill bidding is problem in this hobby for sure. But I also think people cast that stone far too quickly when they see a sale or bidding activity that doesn't line up with how they would bid.