As a seller of a collectible item, we now have a problem on our hands. How do we maximize our final selling price? It is simple. There is a reason you get the best deals on ads where no picture is offered, and no detailed description is available. To get every dime out of your item, make sure to offer ample pictures, descriptions, ownership titles, letters of authenticity, etc. An article recently published by the American Economic Association about asymmetric information revealed that eBay Motors auctions fetch an extra $80 per photo provided by the seller. Happy Bidding/Selling!
Winners Curse: Craigslist
I am not ashamed to be one of those "low-ball bidders" who is always scanning Ebay, Craigslist, and KSL classifieds in search of that GOLDEN nugget. Recently, I read an article about the "winner's curse," which states that many auction items are sold well above their intrinsic value. This is often due to the fact that information is not equally known by both the buyer and seller. If I offer a high price, I will win both high and low quality items but pay more -- on average -- than what my items are really worth. This is known as "information asymmetry." As a result of this knowledge, we can all constantly low-ball bid items and walk away with the deal of a lifetime on a weekly basis.
Posted by Bomber at 12/10/2013 11:05:00 PM