Asked by Michelle Mazur on Jul 09, 2024
Verified
Ebay's use of "bidding agents" will
A) effectively turn an English auction into a Vickery auction
B) effectively turn a Vickery auction into an English auction
C) decide how much to shade your bid for you
D) make you a more aggressive bidder
Bidding Agents
Bidding agents are systems or software designed to automatically place bids on behalf of users or organizations, often used in online auctions or digital advertising platforms.
Ebay
An online marketplace and auction platform where individuals and businesses can buy and sell a wide variety of goods and services.
Vickery Auction
An auction in which the highest bidder wins but pays the second highest bid price, encouraging true value bidding.
- Examine the impact of participant conduct and tactics across various auction models.
- Assess the effectiveness of auctions in achieving fair market values.
Verified Answer
LC
LaPorsha CaseyJul 13, 2024
Final Answer :
A
Explanation :
Bidding agents allow buyers to set a maximum bid, and then the agent automatically bids on their behalf up to that maximum amount. This effectively turns an English auction (where bids increase in increments until no one is willing to bid any higher) into a Vickery auction (where the highest bidder pays the amount of the second-highest bid).
Learning Objectives
- Examine the impact of participant conduct and tactics across various auction models.
- Assess the effectiveness of auctions in achieving fair market values.