Re: [CR]A new record? - and way early sales!

(Example: Component Manufacturers)

Date: Thu, 18 Oct 2007 10:28:19 -0400
From: "Norm and Val Lafleur" <nvlafleur@verizon.net>
Subject: Re: [CR]A new record? - and way early sales!
To: "classicrendezvous" <classicrendezvous@bikelist.org>, <hersefan@comcast.net>
References: <101820071339.7194.471761F6000A974D00001C1A2200745672020E000A9C9D0A08@comcast.net>
reply-type=original

I have this on my watch list and the auction is still active. $5100.00 with 3 1/2 days to go. Maybe this link will work.

http://ebay.com/<blah>

Norm Lafleur
Ashfield, Ma.
USA


----- Original Message -----
From: hersefan@comcast.net
To: haxixe@gmail.com
Cc: oroboyz@aol.com
Sent: Thursday, October 18, 2007 9:39 AM
Subject: Re: [CR]A new record? - and way early sales!



> Actually I can think of a reason...
>
> Let us suppose someone said to the seller "I'll give you 10K instead of
> the 5K if you end the auction now". Perhaps this buyer was willing to go
> as high as 12K on the bidding, and thinks there is a chance someone else
> might even go higher.
>
> But the seller, as everyone else, knows that there is also a chance that
> no other buyer will go much higher than the current 5K. In this case, the
> seller locks in another 5K by selling early with certainty, and the buyer
> gets the piece for 2K less than what their max bid would be. For the
> seller, if the certain additional 5K exceeds the expected value of seeing
> the auction to the end, it makes perfect sense to end the auction early.
> And of course, sellers relative aversion to risk is also crucial in this
> calculation (i.e if a gambler than might want auction to go to end unless
> early payoff is even greater). This analysis also assumes relatively thin
> markets where buyers "reservation prices" may vary by considerable
> amounts.
>
> In general, I've never wanted to end ebay auctions early since usually the
> seller is always made worse off. But now I realize that if the payoff for
> early sale is great enough, it can make perfect economic sense.
>
> Mike Kone in Boulder CO
> Boulder Bicycle
> Rene Herse Bicycles Inc.
> Housingmetrics Inc. - data analysis for the housing biz
>
> -------------- Original message --------------
> From: "Kurt Sperry" <haxixe@gmail.com>
>
>> "*This listing () has been removed or is no longer available. Please make
>> sure you entered the right item number. *
>> If the listing was removed by eBay, consider it canceled. Note: Listings
>> that have ended more than 90 days ago will no longer appear on eBay.
>>
>> Some kind of underhanded dealing it looks like. I can't think of a
>> rational
>> reason why a seller would be advantaged by ending an auction early. At
>> least not voluntarily. An auction is a legal agreement to sell to the
>> highest bidder at the scheduled auction close. This one smells funny.
>>
>> Kurt Sperry
>> Bellingham WA
>> USA