> second, while they are away from the computer and unable to respond).  Of
> course sniping is technically irrational, or perhaps it is a rational
> response to others' irrationality -- I'm not sure.

In case it hasn't been discussed here before (I couldn't find a list
archive): "sniping" means bidding just before the end of an auction,
with the goal of preventing irrational bidders from reacting to one's
bid.

Sniping is rational because it withholds from competitors a critical
piece of information: that someone else is willing to bid more for an
item than they have bid.

Based on small number of eBay purchases (roughly 5 auctions without
sniping and 15 with sniping) I believe sniping to be a good strategy.  

The cost of sniping is very small given appropriate software:

  http://www.midwestcs.com/bidwatcher/

By the way, are economists using eBay to test their hypotheses?  Seems
like a marvelous source of data.

John

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