Internet Auctions and The Winner's Curse
from the interesting-economic-theories dept
An interesting economic theory on why auctions are really inefficient, and online auctions only make the matter worse. Some interesting ideas on what this might mean to eBay, but that’s not developed very much. Also, a small point, but the author missed the fact that eBay split, and so his price comparisons in the beginning of the article are misleading – even though he thought he was making a point about how much the stock had risen, he’s actually only halfway there.