Re: RE: [CR]Confente "Scam" ends

(Example: Production Builders:Cinelli)

Date: Mon, 18 Jun 2001 14:10:18 -0700
To: TW406@aol.com, classicrendezvous@bikelist.org
From: "Joseph Bender-Zanoni" <jfbender@umich.edu>
Subject: Re: RE: [CR]Confente "Scam" ends
In-Reply-To: <111.11e18ed.285f743d@aol.com>


The scam is if the reserve is unreasonable, like twice the market price. The reason is that at the moment the bidder places the bid (not knowing the reserve), they are committing to a sale should they meet the reserve, so, for some period of time, they are tying up their money. I am not talking about a legal sense here as the effect of a reserve in an auction is a long established principle, but I think from an ethical point of view, the purpose of a reserve is to protect a buyer from a lack of interest that does not attract a market price or higher. Falsely testing the market or setting up a negotiating list is not a legitimate purpose of an auction or a reserve. I realize in many cases the market price is subjective and people just don't know the value, but I don't think that was the case with the Confente.

Consider: Gee, I wonder what bike X is worth, I think I'll run an Ebay auction with a really high reserve.

Joe Bender-Zanoni

At 11:11 AM 6/18/01 EDT, TW406@aol.com wrote:
>Gee, I thought this was America? Seller has a right to set any price they
>believe their item to be worth, no matter how unreasonable. Conversely, a
>buyer has a right to pay how ever much they like, no matter how absurd. The
>market will decide the outcome.
>
>What scam? Don't like what something is bringing, stop bidding.
>
>Geez.
>
>Ted, just my opinion; happy to be a part of the free enterprise system.