Prettymuchdeterminedbywhatpeoplearewillingtopayforthemwouldbe a really a frustratingthingifwhen I wenttobuyshampoointhegrocerystore, I hadtogobidonitandwaitandletotherpeoplebidallthewhilewaitingformyshampoo.
When I'm thinkingaboutwhat I shouldbidto a firstprice, he'llbid.
I say, Well, I'm gonnapaymybid, solet's saymyvalueis 100 I thinkaboutsubmitting a bitof $75.
Thatmeansif I win, I get $25.
If I lowermybed a bit.
Well, somechance I getbeat, but I makemoremoneywhen I dowin.
Thesealedbidauctioncausesmetocutmybid a lot, becausethat's wheremyprofitisontheVickeryauction, incontrast, that I'm gonnabid $100 because I wannawinanytimethepricecomesoutbelow $100 sothatcomesinlove.
Nowtheycomeandtheyofferyousellyou a carfor $2000 thatreallyshouldsellformorelikefouror $5000.
You'rekindofnervous.
There's somethingthatyoudon't knowaboutthiscar.
Isitreallyworth $2000?
Andmaybeyouneed a carandyouwouldliketobuyit, butyou'restillverysuspiciousthatthiscarisworthwhile.
Ifitturnsout, though, that 10 otherpeoplewhoknowcarsprettywellhadbid 1618 119 $100 youcouldbe a lotmorewillingtopay $2000.
Sotheeffectofthisisif I knowanotherbidderiswillingtopaymoreforitrationally, I willactuallyincreasemyvalue, or I willbelessskepticalthatit's actually a pigin a poke.
WhatthatmeansistheEnglishauction.
Thisauralascendingauctiondoes a goodjobinducingpeople.
Thebidmore.
Why?
Becausewhenthepricegoesup, I say, Oh, well, there's anotherbidder, atleastoneotherbitterwillingtopaythis.
Somyfirstadviceis, ifyouwantsomethingandyou'renotin a hurry.
Ifyou'rein a hurry, I'llbuyit.
Now, ifyouwantsomethingandyou'renotin a hurry, watchwhattheoutcomesarebecauseeBaydoesn't reallymakethisallthateasytoknow.
What, whatthingssellfour.
Track, howmuchitsellsforindifferentauctions.
Andthatgivesyouaway.
Well, if I'm willingtowaitsixweeks, here's what I expecttopay.
If I'm willingtowaitthreemonths, I willexpecttopayless.
I'llseeanauctionthatshowsupwith a lowerprice, andsothatgivesyouinformationthatarmsyouaboutwhattobidandthensofigureoutthatnumbersubmittedinoneelectionassoonasitgetsbeat.