Re: Re: Re: The E-Bay HOLTON


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Posted by Joe Baker on January 17, 2003 at 17:00:55:

In Reply to: Re: Re: The E-Bay HOLTON posted by JoeS on January 15, 2003 at 19:25:15:

Joe, I agree with the basis for what you are saying, namely that no one should bid more than the item is worth to them, and it is true that no one can force you to pay more for an item than it is worth to you. Still, there are two reasons that I believe shilling is wrong, beyond any laws or auction-house rules.

First, while deception is just about always wrong, deception for personal gain seems particularly wrong, and that is what shilling is. You have expressed your opinions of merchants who purposely misinform consumers; I'm not sure I see how this is very different.

Second, there is a principle involved in auctions, one that is implicitly agreed to by buyers and sellers who participate: namely, that an item's value is a 'little' more than what the SECOND-most interested party is willing to pay. Say you've got an item there that I would pay $100 dollars for, because it finally completes my collection, but the second-most interested party thinks it's worth $10. There is implied agreement that this item should sell for $11 or $12. Now, if the average street value is $5, then the competitive bid has worked to the advantage of the seller. If the street value is $20, the 'second-most interested party' aspect has benefitted me. But that's the way an auction works. A shill perverts the process to the benefit of the seller and the detriment of the buyer, changing the procedure from an auction to a haggling session. The fact that it does so via deception is that much more poop on the pile. If a seller wants to get into one-on-one negotiation, an auction is not the proper venue.

In short, the reserve should act as the seller's one and only "sealed bid", and thereafter he should remain silent until the auction has ended.

Joe Baker, who very seldom disagrees with Joe S., particularly on ethical matters.


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