Has anyone tried to buy something on E-bay and noticed that the item you want is always being sold by the same person? That is to say, the seller is making it or providing the selling item. People bid it way up because they think that it is the only one of its sort. Then, the next week, it is back and the beginning bid is $5. It is like the Dutch auction discussed in class and there is no consumer surplus left because it all goes to the seller.
Posted by Mack at 4/10/2005 05:33:00 PM