My post [#66] explaining the shill bidding technique with a web based sniper acting as a proxy to cloak the identity of the seller was hypothetical, and returned to the beginning of the thread. It is nothing against this particular seller, and having met him, I doubt he was shill bidding. The thread continued as I had been missold a broken CPE2. I am very grateful to the helpful advice given to me here regarding getting the issue resolved, which it has been.
I emphasise again the initial issue had been about shill bidding, never about price. If I pay what I estimate is fair value, provided nothing underhand goes on in an auction, its fair game. However, when using ebay, there is economic value in the <expectation> that the price can deviate beneath fair value, <on average>. This is why ebay charges for the seller to raise the starting price or to have a reserve, as it makes items less attractive to buyers looking to monetise the value of this economic option.
This is where the concept is a bit tricky. Even if you end up paying your maximum bid, during the auction, you still had the economic value of a fair auction, and the potential to get a bargain. Its a bit like having a lottery ticket. During the period building up to the lottery, your ticket has some economic value. Even if you don't win, you still had the real benefit leading up to the end of the lottery.
Shill bidding ruins this statistical outcome, and wrecks the process for a buyer, and is therefore banned by ebay. It also undermines trust in the process and reduces the usage of ebay.
Another way of looking at is you would not go to casino and be happy if someone weighted the dice, knowlingly in their favour.
I am reminded of a Mark Twain quote, and will never post again on this thread, "Never argue with a fool, onlookers may not be able to tell the difference".
Last edited by hoojammyflip; 01-25-2010 at 07:25 AM. Click to view previous post history.