Is there a "group mentality" at online auctions?

> 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....

I believe that it is true that people who are scanning the listings at an auction site tend to look closer at items that have a large number of bids. And if it happens to be something they are looking for, it increases the likelihood that they will bid on that item.

Bidders are also encouraged by the fact that since others are bidding in such large numbers, the item must be a "desirable" item of "exceptional value".

This bidding frenzy is almost always beneficial to the seller who may end up receiving an inflated price for the item.

I once offered a "box" on eBay expecting to accept $25 for it. A week later, after a flurry of bids the last day, I was tickled pink to see that the bids had risen to $272!

Hooray for the herds!

JDB


The $272 Box