On 12 Jul 2005 08:15:31 -0700, the renowned jim rozen
wrote:

In article , DoN. Nichols says...

1) I don't wind up with someone who isn't *sure* what it is worth to
them bumping my bid up a few dollars at a time until they find
my maximum or they finally decide that they don't want to spend
*that* much for it after all -- after pushing my bid to more
than I otherwise would have needed to pay.

2) I don't have the time to increment my own bid, if someone outbids
me, so I can't be *goaded* into bidding more than I had already
set as a maximum.

[3] Oh yes -- also it leaves me free to bid on another auction for
the same item. ...

And (4), it absolutely prevents shilling. Shilling only really works
when the seller bumps the bids during the auction. This sort of
nonsense does not work in the 'sealed bid' example of sniping.

Jim

All true.

It's not quite a normal sealed-bid auction when you bid at the very
end. As D. Lancaster has pointed out, it's effectively a "Vickerey
Auction" (sealed bids and the high bidder gets the item, but pays the
SECOND-highest price). The advantage of this is claimed to be that the
optimal strategy for the bidder is to bid just what the item is worth
to them.

http://www.cs.huji.ac.il/~foec/scribes/lec4.pdf


Best regards,
Spehro Pefhany
--
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