Bidders at Auction Mostly Think Prices Are Too High
Isn’t that, like, the very definition of an auction? People offer different amounts of money, the one who offers most buys the thing, everyone else offered less… which means that they consider the final price too high.
Indeed! The primary reason to have an auction rather than a fixed-price first-come-first-served offer is to FIND the buyer who values it highest. This selection effect guarantees the price will be higher than others are willing to pay.
Isn’t that, like, the very definition of an auction? People offer different amounts of money, the one who offers most buys the thing, everyone else offered less… which means that they consider the final price too high.
Indeed! The primary reason to have an auction rather than a fixed-price first-come-first-served offer is to FIND the buyer who values it highest. This selection effect guarantees the price will be higher than others are willing to pay.