[sdiy] ebay internal shill bidding?

[Thomas Strathmann]

On 1/5/11 04:30 , Mike Pepper wrote:
> I think a very real problem with ebay is that it is not a real auction. It
> is more akin to a game of 'chicken', with everyone holding off until the
> last minute to bid or 'swerve'. This has the effect of keeping prices down,
> and inciting shill attempts to get them up, usually from sellers.

How are second price auctions not "real"? The problem with eBay seems to 
be that their version of the second price auction does not conceal the 
current highest bid and that appears to cause the behaviour of bidders 
and sellers you describe. If eBay were to use sealed second priced 
auctions it certainly would appear a lot less attractive, especially for 
items that are not worth a whole lot of money. And people would whine 
about how winning an auction seems to be governed by luck (or evil 
manipulation by eBay).

	Thomas