• The BladeForums.com 2024 Traditional Knife is ready to order! See this thread for details: https://www.bladeforums.com/threads/bladeforums-2024-traditional-knife.2003187/
    Price is $300 $250 ea (shipped within CONUS). If you live outside the US, I will contact you after your order for extra shipping charges.
    Order here: https://www.bladeforums.com/help/2024-traditional/ - Order as many as you like, we have plenty.

  • Today marks the 24th anniversary of 9/11. I pray that this nation does not forget the loss of lives from this horrible event. Yesterday conservative commentator Charlie Kirk was murdered, and I worry about what is to come. Please love one another and your family in these trying times - Spark

Confused about Buck knife "Dutch Auction"

chickentrax

chickentrax

Joined
Aug 5, 2005
Messages
5,527
This auction has ended, but I'm not going to link it per the Rules...but it's *not* eBay...

Here's the story...

I saw a Buck knife that I wanted at auction...the seller had seven of them for sale......and there were only 4 bidders...The bid was $100, so I put in a bid of $100...OK; that's cool...but then I noticed a little blue "D" after the description, which [evidently] means a Dutch Auction...

At about an hour before auction end, I get an "outbid" email...there's now eight bidders...mine is lowest...the high bid is now up to $105...So, since I'm going to be away from the PC, I put in a bid of $137.99...(my ceiling on this particular knife)...When I get back to the PC, I see an email telling me I'm a winner...Yay!...but the email goes on to say that the winning bid was $105 and that's what I need to pay (plus shipping)...

So, I'm confused...When I looked up the blue "D" and read what their Dutch Auction was, I was still confused...I even Googled Dutch Auctions, but those definitions were even more confusing...

So, help me out here...Am I understanding this correctly: That the highest bidders win the items at the *lowest* winning bid??? :confused:

This seems sort of...insane... :rolleyes:
 
chickentrax said:
This auction has ended, but I'm not going to link it per the Rules...but it's *not* eBay...


So, help me out here...Am I understanding this correctly: That the seven highest bidders win the items at the *lowest* winning bid??? :confused:

Trax, that is my understanding on how Dutch auctions work as well, at least on ebay. As many items that a seller has listed for sale are won by the same number of respective bidders at the lowest of those individual's bids (Geez, what a sentence, but hope that makes sense).
Click to expand...
 
Tin Sue said:
chickentrax said:
This auction has ended, but I'm not going to link it per the Rules...but it's *not* eBay...


So, help me out here...Am I understanding this correctly: That the seven highest bidders win the items at the *lowest* winning bid??? :confused:
Click to expand...

Trax...As many items that a seller has listed for sale are won by the same number of respective bidders at the lowest of those individual's bids (Geez, what a sentence, but hope that makes sense).
Click to expand...

That's my whole issue...It doesn't make sense...Why wouldn't the highest bidders win it at their high bids??? Why the lowest of the high bids??? :confused:
 
It is set up so that everyone that wins pays the SAME (key word, here) price, and other bidders that have not bid as high as the highest bidder should not therefore be expected to pay a higher price than they actually bid. As a result, every winning bidder pays the SAME lowest winning bid. I never said it made sense (it's a lot like my wife); it's just the way it (she) is!!
 
Tin Sue said:
It is set up so that everyone that wins pays the SAME (key word, here) price, and other bidders that have not bid as high as the highest bidder should not therefore be expected to pay a higher price than they actually bid. As a result, every winning bidder pays the SAME lowest winning bid. I never said it made sense (it's a lot like my wife); it's just the way it (she) is!!
Click to expand...


That is the way I understand it from my limited experience with dutch auctions. Evidently know one placed a bid over $105, so the higher proxy bids were not applied. If one of the other bidders would of went to $110, then bidders that went up to or over $110 each would have won one item at that price. :confused: At least I think thats how it works.
Rick
 
:jerkit: Now that were all confused and unconfused, what kind of knife was it??? Do you have any Pic,s of it??? For $105 it must be a nice knife...
 
Ummmmm...No, that can't be right...

Here's the scorecard - And it does appear that the lowest bid of the seven highest bidders is the "winning" bid...but I still don't understand the logic of it... :grumpy:
 
The Last Confederate said:
Dutch Auctions sorta work backwards of a normal auction.

http://en.wikipedia.org/wiki/Dutch_auction
Click to expand...

That definition is one of the ones that confused me...since it doesn't address which the winning bid is...

Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price (the seller's minimum acceptable price) is reached. The winning participant pays the last announced price.

This type of auction is convenient when it is important to auction goods quickly, since a sale never requires more than one bid. Theoretically, the bidding strategy and results of this auction are equivalent to those in a Sealed first-price auction; however, experiment indicates that a Dutch auction typically results in lower sale prices [1].

The Dutch auction is named for its best known example, the Dutch tulip auctions. (In the Netherlands this type of auction is actually known as a "Chinese auction"[1]).

Dutch auction is also sometimes used to describe online auctions where several identical goods are sold simultaneously to an equal number of high bidders. Economists call the latter auction a multi-unit English ascending auction.
 
To paraphrase an old adage, "yours not to reason why, yours just to bid and buy."
 
Perhaps we should just call it a 'multi-unit English ascending auction' to keep it simple.... :rolleyes: ;)

I can't figure it out either. In any case, you got your knife for $33 less than you were willing to pay - just be happy!
 
The top 7 bidders receive the knife at the lowest qualifying bid.

If you tried to do it the other ways, you might be trying to compell people to pay more than their max bid.

If you were only willing to pay 105, and that was the 7th lowest bid (7 knives) should you be compelled to pay 400$ if someone else really really wanted the knife?(or if the seller, under a false identity rove the price up?)

The seller assumes more financial risk in a dutch auction.
 
chickentrax said:
Ummmmm...No, that can't be right...
Here's the scorecard - And it does appear that the lowest bid of the seven highest bidders is the "winning" bid...but I still don't understand the logic of it... :grumpy:
Click to expand...

the score card looks good to me, to bad 'chickentrax' did not win one!
 
Ed T said:
If you were only willing to pay 105, and that was the 7th lowest bid (7 knives) should you be compelled to pay 400$ if someone else really really wanted the knife?
Click to expand...

No...My thinking was that the top seven (in this auction) bids would all be winners...at their "as-bid" (individual highest bid) prices...It seems to me that if you're willing to pay that much, then that should be your winning bid...

334dave said:
the score card looks good to me, to bad 'chickentrax' did not win one!
Click to expand...

I'm pittsburghphil on that Auction/Forum... :)
 
I think the number of non paying bidders would spike if one person is paying a premium and 6 others were paying less. Consumer behavior might be ugly. In other words, no pay and wait for another listing. There are a lot of turds in the world.
 
Ed T said:
I think the number of non paying bidders would spike if one person is paying a premium and 6 others were paying less. Consumer behavior might be ugly. In other words, no pay and wait for another listing. There are a lot of turds in the world.
Click to expand...

See, now that's what I don't get...My highest bid was what I'm willing to pay, which is $15 less than the knife is getting elsewhere on the Web...So I'm still happy even if I pay more than the other six guys...because I'm still paying less than it's going for... :thumbup:

There's something going on here that I'm not understanding... :grumpy:
 
Perhaps I have too low of an opinion of people. I think that as a society, we have a bloated sense of entitlement. As a result, most people are incapable of viewing it in the way you describe. They will act butt hurt because someone else got a better deal.

Ed
 
Buckaholic said:
Thanks Tender Loving Care...
That cleared it up for me :confused:.
Click to expand...

No problem, my purpose in life is to serve as a bad example for others! :D


All kidding aside, I believe this is how a "dutch auction" on Ebay works.

1. A seller puts up an auction for 10 identical items.
2. Folks bid, and the highest bidder can buy any number of the items for his high bid, so let's say he takes 5 items.
3. The next highest bidder can now buy any number of the remaining 5 for his highest bid, and he takes 3.
4. The next highest bidder can buy 1 or both of the remaining 2 at their highest bid.

And on and on, until all 10 are sold.
 
You must log in or register to reply here.
Back
Top