Benjamin2009-12-09
Cheap Talk: Ebay strategies

I promise not to continually update this \'blog with posts directing you to Cheap Talk, but I thought that this article was also fascinating:

http://cheeptalk.wordpress.com/2009/12/08/sniping-and-squatting/

They compare two common eBay strategies (bidding your maximum price at the beginning and then waiting to see if you win, vs. waiting for the last possible second and bidding) and determine that there is no advantage to either.

Comments
Fuz2009-12-10
It is to be noted that they only made that conclusion in regards to auctions for which there are large numbers of homogenous items. Auctions for things which are relatively unique (ie artwork, rare collectibles where there\'s only one auction going on, etc.. etc..) may have different dynamics. My father swears by sniping, FWIW.
DavidC2009-12-09
Kind of a reassuring result. I guess one or the other strategy could have cognitive or other practical benefits. (Maybe it\'s nice not to have to decide just how high you would go, if the bidding ends up high enough that you know you won\'t go there.)

I guess Swoopo, which I mentioned recently is more likely to have different strategies make a difference. But maybe not that much difference