proxy bid

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pages: 218 words: 60,935

How to Buy Property at Auction: The Essential Guide to Winning Property and Buy-To-Let Bargains by Samantha Collett

Firefox, proxy bid, the market place, time value of money

However, to this day, this experience makes me nervous about organising telephone bids and wherever possible I always try to attend, or request somebody else attend on my behalf. (Source: Network Auctions, 2013) Proxy bidding A proxy bid is where you instruct the auctioneer to bid on your behalf at the auction. This requires similar administration as a telephone bid (ID documents, 10 per cent deposit and buyer’s premium) and will involve completing a proxy bid form. This works in a similar way to the telephone bid and will require you to plan your maximum bid in advance. The key difference with a proxy bid is that no further communication with you is required – the auction house will bid on your behalf in the room.

Psychology of the auction room The look of an auction sale room The feel of an auction sale room Bid pace and opening prices ‘Auction fever’ Role of the auctioneer Auctioneer tactics Auctioneer cues: how to watch the auctioneer Auctioneer code of conduct How to bid for an auction property Have a clear ‘eyeball’ position Attracting the auctioneer’s attention and bidding styles When to bid? How much to bid? Alternative methods to bid Telephone bidding Proxy bidding By someone else Online Do a dummy auction run Test experience: practise buying a property at auction Practise research – but do it in real life! Unsold property Property withdrawn Chapter 8: After Auction: What Next? Exchange of contracts The race to complete: on auction day After the auction . . . a frantic few days What happens if I am delayed or can’t complete?

TIP Many property auctioneers can appear intimidating when standing high on the rostrum – but remember they need you, the buyer – to help them do their job. Auctioneer code of conduct The auctioneer reserves the right to bid on behalf of various parties. This is usually included in the conditions of sale and it is a point which will be mentioned in the opening speech. These various parties may include any telephone or proxy bids received, and it does also include the person selling the lot. This right to bid on behalf of the vendor is included in the Sale of Land by Auction Act, 1867. What this means, in practice, is that if an auctioneer is auctioning a lot but the level of bidding has not reached the reserve price, the auctioneer can ‘take a bid off the wall’ on behalf of the vendor to help move bidding closer to the reserve price.


pages: 350 words: 103,988

Reinventing the Bazaar: A Natural History of Markets by John McMillan

accounting loophole / creative accounting, Albert Einstein, Alvin Roth, Andrei Shleifer, Anton Chekhov, Asian financial crisis, classic study, congestion charging, corporate governance, corporate raider, crony capitalism, Dava Sobel, decentralized internet, Deng Xiaoping, Dutch auction, electricity market, experimental economics, experimental subject, fear of failure, first-price auction, frictionless, frictionless market, George Akerlof, George Gilder, global village, Great Leap Forward, Hacker News, Hernando de Soto, I think there is a world market for maybe five computers, income inequality, income per capita, independent contractor, informal economy, information asymmetry, invisible hand, Isaac Newton, job-hopping, John Harrison: Longitude, John Perry Barlow, John von Neumann, Kenneth Arrow, land reform, lone genius, manufacturing employment, market clearing, market design, market friction, market microstructure, means of production, Network effects, new economy, offshore financial centre, ought to be enough for anybody, pez dispenser, pre–internet, price mechanism, profit maximization, profit motive, proxy bid, purchasing power parity, Robert Solow, Ronald Coase, Ronald Reagan, sealed-bid auction, search costs, second-price auction, Silicon Valley, spectrum auction, Stewart Brand, The Market for Lemons, The Nature of the Firm, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, War on Poverty, world market for maybe five computers, Xiaogang Anhui farmers, yield management

eBay’s solution is to accept proxy bids. Bidders may confidentially tell eBay’s automated bidding agent the maximum they are prepared to bid. If the current bid level is smaller than a proxy bid, eBay’s computer automatically submits a bid on behalf of the proxy bidder, a small increment above the current high bid. The agent stays in the bidding up to the level of the proxy bid. Thus the proxy bidder could win, depending on the competition, at any price up to the level of the proxy bid. The price the proxy bidder pays is the second-highest bid plus a bid increment. eBay’s proxy bidding does not always succeed in eliminating sniping, however.


pages: 252 words: 73,131

The Inner Lives of Markets: How People Shape Them—And They Shape Us by Tim Sullivan

Abraham Wald, Airbnb, airport security, Al Roth, Alvin Roth, Andrei Shleifer, attribution theory, autonomous vehicles, barriers to entry, behavioural economics, Brownian motion, business cycle, buy and hold, centralized clearinghouse, Chuck Templeton: OpenTable:, classic study, clean water, conceptual framework, congestion pricing, constrained optimization, continuous double auction, creative destruction, data science, deferred acceptance, Donald Trump, Dutch auction, Edward Glaeser, experimental subject, first-price auction, framing effect, frictionless, fundamental attribution error, George Akerlof, Goldman Sachs: Vampire Squid, Gunnar Myrdal, helicopter parent, information asymmetry, Internet of things, invisible hand, Isaac Newton, iterative process, Jean Tirole, Jeff Bezos, Johann Wolfgang von Goethe, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, late fees, linear programming, Lyft, market clearing, market design, market friction, medical residency, multi-sided market, mutually assured destruction, Nash equilibrium, Occupy movement, opioid epidemic / opioid crisis, Pareto efficiency, Paul Samuelson, Peter Thiel, pets.com, pez dispenser, power law, pre–internet, price mechanism, price stability, prisoner's dilemma, profit motive, proxy bid, RAND corporation, ride hailing / ride sharing, Robert Shiller, Robert Solow, Ronald Coase, school choice, school vouchers, scientific management, sealed-bid auction, second-price auction, second-price sealed-bid, sharing economy, Silicon Valley, spectrum auction, Steve Jobs, Tacoma Narrows Bridge, techno-determinism, technoutopianism, telemarketer, The Market for Lemons, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade route, transaction costs, two-sided market, uber lyft, uranium enrichment, Vickrey auction, Vilfredo Pareto, WarGames: Global Thermonuclear War, winner-take-all economy

You might, for example, only want a new TV if you also got an Xbox, and only want the thirty-inch TV if you don’t get the forty-inch one.8 But maybe that wouldn’t matter so much anyway: instead of having to make a special trip to the mall to put in your pen-and-paper bids, you could simply enter an online bid for one TV, see what happens, then try for another. It wouldn’t be overly time consuming or cumbersome, as you need never check back or alter your bid. This is, in fact, the way it works for eBay auction listings today. Much as stamp collectors mailed in proxy bids to dealer William P. Brown’s New York auction house, you go to the web page for an item you’d like to bid on, enter your walk-away price, and forget about it till the auction ends. eBay takes care of raising your bid as necessary, and by Vickrey’s reasoning, you can be sure that if the value you placed on the item is high enough, you’ll get it.

Pierre Omidyar’s eBay was the first major online auctioneer, but the whiff of potential profits soon brought competition from other pioneers like Yahoo and Amazon. Yet the promise of an internet auction takeover has long since fizzled. Amazon’s auction site never took off, while Yahoo shuttered its auction business by 2007. It’s true that you can still register a proxy bid for any one of the millions of auctions listed on eBay today, but while the company is still known to many as an online auctioneer, by the end of 2012 less than 15 percent of listings used an auction format, down from nearly 100 percent just ten years earlier. The rest are plain-vanilla fixed-price sales, just as one would see listed from a third-party seller on Amazon, which makes buying things on eBay fundamentally not that different from the way people have done their shopping for the past century or so.

The prices of auctions-in-progress were lower, not surprisingly: among those that had received at least one bid, the prices ranged from $71.50 to $178.50, though at least one edged its way upward even in the half hour or so we spent on the site. (There is always a lot of action in the last few minutes of an auction. Proxy bids were meant to spare shoppers the trouble of tuning in through the flurry of activity that takes place as an auction closes, but it hasn’t really worked out that way.11) Among this set of near-identical listings, compare, say, the sale of a buy-it-now-for-$200 iPod to an auction listing that ultimately goes for $180.


pages: 153 words: 45,871

Distrust That Particular Flavor by William Gibson

AltaVista, Alvin Toffler, Bletchley Park, British Empire, cognitive dissonance, cuban missile crisis, disinformation, Disneyland with the Death Penalty, edge city, Future Shock, imposter syndrome, informal economy, Joi Ito, means of production, megastructure, military-industrial complex, Neal Stephenson, pattern recognition, proxy bid, restrictive zoning, Snow Crash, space junk, technological determinism, telepresence, Vannevar Bush, Whole Earth Catalog

On the night of the auction, after having carefully considered bidding strategy (and this with no prior experience of bidding in any kind of auction), I placed a bid for considerably less than the two-hundred-dollar limit I’d set for myself. That put me in high-bidder position. And then I sat there. What if, it occurred to me, someone noticed my Croton in the auction’s last few minutes and decided to grab it? eBay’s system of proxy bidding encourages buyers to offer the most they’re willing to pay for an item—their “maximum” bid. My maximum bid was a hundred and forty dollars. But on eBay you don’t necessarily end up having to pay your maximum bid. In an auction house, if you raised your hand to bid two hundred dollars on a watch, you’d be on the hook for that amount.

It went for around a hundred fifty dollars and had been listed as “NOS,” which means new old stock, something that supposedly has sat in the back of a jeweler’s drawer since 1952. Very nice, after a trip to Otto, but still not the watch . . . eBay is a cross between a swap meet in cyberspace and a country auction with computer-driven proxy bidding. The auctioneer is one of eBay’s servers. Buyers don’t pay anything to eBay; they just pay sellers for the items they buy. Sellers, however, pay a fee on each item they list, and another fee if it sells. You can set this up so that your eBay seller’s account comes off your credit card. I doubt if anyone’s seller account amounts to much in a given month, but eBay moves a lot of items.


pages: 282 words: 80,907

Who Gets What — and Why: The New Economics of Matchmaking and Market Design by Alvin E. Roth

Affordable Care Act / Obamacare, Airbnb, algorithmic trading, barriers to entry, behavioural economics, Berlin Wall, bitcoin, Build a better mousetrap, centralized clearinghouse, Chuck Templeton: OpenTable:, commoditize, computer age, computerized markets, crowdsourcing, deferred acceptance, desegregation, Dutch auction, experimental economics, first-price auction, Flash crash, High speed trading, income inequality, Internet of things, invention of agriculture, invisible hand, Jean Tirole, law of one price, Lyft, market clearing, market design, medical residency, obamacare, PalmPilot, proxy bid, road to serfdom, school choice, sealed-bid auction, second-price auction, second-price sealed-bid, Silicon Valley, spectrum auction, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, The Wealth of Nations by Adam Smith, two-sided market, uber lyft, undersea cable

PayPal solved the payment privacy problem for eBay and other Internet markets by providing a payment mechanism that doesn’t require you to type in your credit card information for each transaction. But you may be reluctant to reveal other kinds of information, too, and that can interfere with the operation of the market. For example, in an eBay auction, you’re invited to submit a proxy bid of the maximum amount you’re willing to pay. eBay promises to use that number to bid on your behalf, but only as high as needed for you to be the winning bidder. Of course, you have to trust eBay to use the information as it promises (and not just charge you the highest price you’re willing to pay however the bidding went).

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