Is there a "group mentality" at online auctions?

I came across this article, which I thought could interest some people here (especially chattelers)....

This article talks about the "herd behavior bias" at online auctions.... Essentially, it says that according to a recent study, people tend to follow a "herd mentality" at online auctions, being more likely to bid on auctions with already several bids, and less likely to bid on auctions with fewer bids.... Even if the auctions with fewer bids represent better value!

There's a phenomenon I've noticed with online auctions, which is that the auctions which often seem to me to get the highest prices are the $1 no reserve auctions! Probably the reason why is because when you start out with a $1 first bid, you're going to get many more bids in total.... and then the "herd behavior bias" would explain the rest....

I've linked to the article below.... :)

It's also related to the idea of "social proof" which Robert Cialdini talks about in his book, "Influence: The Psychology of Persuasion" (for those who have read it).... When there are more bids, people feel more comfortable adding their bid on the item too.

Knowing this could help you when you're buying or selling at an online auction....

That's because you know that to get a better price when you're BUYING, you should look at the auctions with FEWER bids, and buy at the LESS POPULAR auction sites (with FEWER people).

And to get a better price when SELLING, you could try starting the first bid at a very LOW price, to attract more bidders, and sell at the MOST POPULAR auction sites.... :)

Dien


"Herd Behavior Bias" at online auctions....