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#1
11-29-2006, 10:09 PM
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What is the rationale behind a buyer's premium on an auction
Posted By: Jeff Drum
The real reason they do and will continue to do it is that "we" have not demonstrated the restraint to refuse to pay up by not bidding. We can rationalize that we "build it" into our bid and maybe we do to some extent. It's like American Express charging you to "use" their product when you can get the same for free elsewhere. It's like the automakers continuing to churn out gas guzzling vehicles when gas is $3-4 a gallon. We have little to no restraint. It's a seller's market until there are no buyers. 
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