tag:blogger.com,1999:blog-7332340.post6562433952947373783..comments2024-02-28T05:22:35.956-05:00Comments on FinanceProfessor.com: Economists puzzled by irrational eBay buyers - USATODAY.comFinanceProfessorhttp://www.blogger.com/profile/05948754590238007311noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7332340.post-31675793086013458462007-07-19T15:04:00.000-04:002007-07-19T15:04:00.000-04:00I may be wrong, but given that the products that w...I may be wrong, but given that the products that were being examined were books and such (i.e. replenishable)I think the "BUY IT NOW" button stays on. (or at worst would reappear as soon as current auction is ended and the next (same item) begins.<BR/><BR/>That said that is only my understanding of the auction process.FinanceProfessorhttps://www.blogger.com/profile/05948754590238007311noreply@blogger.comtag:blogger.com,1999:blog-7332340.post-32050958593011095282007-07-19T10:25:00.000-04:002007-07-19T10:25:00.000-04:00I think sometimes you have the choice to either ma...I think sometimes you have the choice to either make a Bid or use the buy it now. After you bid the buy it now is removed and if you have some other bidders interested in the item it might end in a higher price than the original buy it now. It is a risky choice but in no sense its irrational as you canĀ“t forecast the interest in the item (in terms of # bidder and $$).<BR/><BR/>cheers,Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7332340.post-42405914253683565812007-07-19T01:57:00.000-04:002007-07-19T01:57:00.000-04:00I read that hedge funds search for gift cards on E...I read that hedge funds search for gift cards on Ebay as a barometer of a company's current outlook. Gift cards at more desirable stores would sell at close to cash value.<BR/><BR/>What is amazing is that sometimes people bid higher than the cash value.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7332340.post-70902320394401848952007-07-18T22:46:00.000-04:002007-07-18T22:46:00.000-04:00This doesn't strike me as strange at all. In a pe...This doesn't strike me as strange at all. In a perfectly rational market with random noise factored in (which eBay supposedly is) - I would expect that 50% of completed auctions would come in above the "Buy it Now" price and 50% would be below.<BR/><BR/>"Buy it Now" is like a futures contract on the auction. In setting the "But it Now" price, the seller is trying to predict what the final Jay Muntzhttps://www.blogger.com/profile/02278580795665340675noreply@blogger.comtag:blogger.com,1999:blog-7332340.post-87648028980587373722007-07-18T14:37:00.000-04:002007-07-18T14:37:00.000-04:00I'm not so sure if this suggests that ebay buyers ...I'm not so sure if this suggests that ebay buyers are "irrational" so much as merely "careless"...<BR/><BR/>I would guess that 99.99% of them would prefer the cheaper "Buy It Now" price if it was pointed out to them.Biomed Timhttps://www.blogger.com/profile/02394809303177279262noreply@blogger.com