| |
| |
|
Net Auctions and Auction Information |
|
|
|
Game Theory, Nobel Prize, & Auctions - Auction Primer Series - Part 1
William Vickrey, highly regarded as the founder of auction theory, was an economics professor at Columbia University when he published two papers outlining his views on auctions: "Counterspeculation, Auctions, and Competitive Sealed Tenders", 1961, Journal of Finance "Auction and Bidding Games", 1962, Recent Advances in Game Theory In 1996 he received a Nobel Prize "for fundamental contributions to the economic theory of incentives under asymmetric information." It's important to understand that asymmetric information is an essential component of auctions, where potential buyers have varying levels of knowledge about the value of the item. Although Vickrey considered his work on auctions as "one of my digressions into abstract economics, at best of minor significance in terms of human welfare", to those of us who work with online auctions, much of what he outlined is useful to understanding our marketplace. Vickrey identified 4 general types of auctions: English English Auctions Although traditional ascending price auctions use a "soft close" format - where bidding continues until a final bid is placed, the majority of today's on-line auction sites use the "hard close" format - also known as a 'time interval" auction having a set time limit, regardless of ongoing bidding. It's important to note that in a "soft close" format, bid snipping, that is bidding during the last few seconds or minutes on an item, is eliminated since the auction stays open as long as bids are being made. In an attempt to minimize bid snipping and provide more of a "soft close" characteristic to their "hard close" auctions, eBay allows bidders to use "proxy bidding". In proxy bidding, a bidder enters the highest price they are willing to pay for an item when they first bid. The bid begins at the lowest possible level and increases automatically only if their original lowest bid has been beaten. For more in-depth information on the "proxy bidding capability on eBay go here. http://pages.ebay.com/help/buy/proxy-bidding.html Amazon.com currently offers a feature for their auctions called "Going, Going, Gone." The Going, Going, Gone" feature extends the end of an auction for 10 minutes if a bid is placed effectively creating a "soft close". For more information on the "Going, Going, Gone" feature on Amazon go here. http://www.amazon.com/exec/obidos/tg/browse/-/1161360/103-1666189-8415007#going-gone From the buyers standpoint a "hard close" format is preferable since they may be able to make a final bid before others can react, possibly winning the auction at a lower price. For sellers, a "soft close" format provides an opportunity to realize the maximum price for an item by removing the time restrictions for an auction. As long as bidders are bidding the auction remains open. Dutch Auctions As an example of a Dutch auction let's say you had 10 items you wanted to sell for $20 each. Bidder A bids $18 for 6 items Please note that most Dutch auctions allow bidders to refuse an order for a lesser number of items than what they bid on. A "soft" or "hard close" format may be used in Dutch auctions although the most common is the "hard close". First-price Sealed Bid Auctions Second-price Sealed Bid Auctions The above descriptions provide a general overview of the most popular auction types in use today. Depending on the auction website these general categories may include a number of variations and options such as reserve pricing, open or closed venue, multiple items, fixed price and lot listings to mention a few. Before entering any particular type of auctions make sure you study and understand the rules for that specific type of auction, as the rules may vary from website to website. Copyright © Steven Woodward - All Rights Reserved Steven Woodward is the owner, editor and publisher of the Auction Sellers Network (ASN); a web site for individuals and companies who are serious about utilizing the online auction marketplace for their business. In addition to topical articles, ASN provides an extensive resource center, news feeds and member forums. For more information, or to become a member, please visit us at http://www.AuctionSellersNetwork.com No permission is needed to reproduce an unedited copy of this article as long the About the Author tag is left in tact and included. We do request that we be informed of where it is posted and reciprocal links will be considered.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Why Its a BAD Idea To Promote Hot Selling Products on eBay Do a quick search on Google, Yahoo, or your favorite auction resource site, and you'll quickly discover there are several software programs targeted to vendors who want to promote hot selling products on eBay.The infatuation with hot selling products exists because sellers believe if you target items that have a robust sales pattern, you'll have a better chance at profiting on eBay. How Drop Shipping Works One of the most frequently asked questions on the Net is: "What should I sell online?"Many people know what products they want to sell. However, they don't know how to do this. To eBay or NOT to eBay FACT: eBay's Gross Merchandise Sales (GMS) 2003 - GMS, the total value of items sold, was a record $24 billion, representing a 60% year-over-year increase from the $15 billion reported in the full year 2002FACT:Over 79 million times a day, eBay users find products and brands of their choice.FACT:In the final quarter of 2003, reported and increase of 41. Buying & Selling Gently Used Baby Clothing, Strollers, Toys, and Other Baby Items & Products on eBay Need Extra Money? Buy and Sell Your Gently Used Baby Clothing, Car Seats, Strollers, Toys, Books and Products on eBay!Hi Moms,So, you had your precious baby, and you couldn't resist -- all of those cute and beautiful baby dresses, rompers, suits, jean sets, christening gowns, onesies and unique designer baby clothes (like Tommy Hilfiger) that called to you when you were in the Gap, Old Navy, Osh Kosh or Little Me. Not to mention the countless baby clothes that relatives gave you that weren't quite your style, or too big or too small for your baby and still have the price tags on them, never worn. eBays Hot Selling Books, Find Out Which Books Sell & How To Find Them Selling books on eBay can be a very lucrative business! There are eBayers who sell only books and make a nice little income doing it. Where do they get these books to sell? At thrift stores, estate sales, flea markets, book fairs, yard sales, library sales, grandmas attic, etc. Selling on Ebay-Get Started in 7 Easy Steps Ebay auctions are definitely the easiest and fastest way to start earning money online. Ebay. Is Your Trash Cash? 5 Easy Places to Sell Your Stuff The old adage that says "one person's trash is another person's treasure" never goes out of date. So when you're looking for some extra spending cash and you want to make some space in your home, combine the two endeavors by selling your stuff instead of donating it or trashing it. Are You an Ebay Shopper? As I write this article, I am keeping an eye on an item on eBay. Do I have to keep an eye on it? No. Image Hosting For Online Auctions Use eBay picture service or host your own photos?If you use the eBay picture service, your first photo is free. But each additional picture will cost you $0. Profit through Other Peoples eBay Errors There are many issues that influence how an eBay auction ends. Timing, Description, Title, Photos, the list could go on and on. Four Reasons Why You Should NEVER Use Animations In Your eBay Auctions Inexperienced auction sellers, or those lacking in confidence, often want to make their auction listings more dramatic and exciting. They dread the possibility that buyers will be bored by their auction and turn away with indifference. Nine Simple eBay Selling Hints Some of these eBay hints will save you money, others will result in higher prices. Either way, these will help you run more profitable eBay auctions. Attract eBay Buyers Like Crazy! As an ebay(TM) seller it happens very often (too often) that listings close without any bids. Did this happen to you? Many sellers are frustrated and quit their eBay(TM) business. Sell Your Items at Cost and Make a Fortune on eBay! Like all ebay sellers I wanted to sell all of my items at a profit and what I found was that when I was getting to the end of line items that I was ending up selling them at cost, even though the items were finally selling at a profit price, because I was having to factor in the ebay relisting fees etc.So I took a moment and sat down and thought how I could deal with these items and still make money. Multiple Income Streams on eBay within 30 Minutes! POWERSELL Status, the secrets revealed.If like thousands of people you have been using eBay and wondering how to gain a regular income, and work from home, this article will help you. 5 Ways to Drive Traffic Away from Your EBay Auction eBay is a one-stop solution to any one who wants to make money online. Whether you just selling a few unwanted items from around your house or your want to develop a work from home business, eBay removes many of the obstacles for you. Five Ways To Detect Shill Bidders On eBay So That You Dont Pay Absurd Prices There is as a lot of buzz about shill bidders on the eBay forums. But in actuality, shrill bidding isn't that common and is rather easily detected. Dont Sell Grandmas Jewelry at a Yard Sale...Get More Money Have some vintage jewelry? There are several ways you can sell collectible or vintage costume jewelry. How much your vintage jewelry is worth depends on several things. Search... Search... Search Your Way To eBay Cash! One of the most valuable things in life is the ability to learn a skill. One of my dad's favorite sayings was "You can give a man a fish and he will eat for a day, or you can teach a man to fish and he will never go hungry. Effective Auction Listings - How To Create Them Once you've created the best possible title for your item, you will move on to writing your auction description. Here, you have more space to give a detailed description of the item you are selling in the body of your auction.
|
| home | site map |
| © 2006 |
