QUOTE(chud @ Nov 12 2007, 07:04 AM) [snapback]416792[/snapback]
QUOTE(LedZepGirl @ Nov 11 2007, 11:26 PM) [snapback]416770[/snapback]
I lost another auction tonight and the thing that burns me is I would've won it if it weren't for my tempremental dial up internet that decides to freeze up at the most inconveint times.
Bid your real limit the first time instead of at the last minute -- then if you lose it at the end at least it really was too expensive... (Sorry, I know "shoulda done it this way" isn't much consolation when you lost one you wanted - but it is one way to deal with unreliable connectivity.)
Actually, there is a pretty strong theoretical argument for not bidding early, and it mostly deals with people being irrational. Roughly, if everyone were to bid their maximum bid at the first and then never update it, then the strategy suggested would work fine. Everyone makes a bid for it, and whomever had the highest bid wins -- clean and simple.
However, since this is an ongoing auction, such a strategy ignores the impact of the information available in the 'current bid' and 'bid history' on the web page. Thus, the 'maximum' someone would pay is actually quite dynamic based on the actions of the other players (bidders). Someone sees they have been outbid, and for whatever reason (competitive instinct, re-evaluation of the item, etc.) the maximum value has increased -- and so will the bids until the price is raised sufficiently high to eliminate all other bidders.
So, what actually goes on is favorable for the seller but awful for bidders. To approximate the earlier scheme where everyone has a static maximum bid, the best strategy is to have everyone wait until just before the end of the auction to place their maximum bid. That way the person with the largest initial bid (ignoring things like competitive nature, etc.) will win the item without over-inflating its value.
In short, you should wait until the last 30 second or so and then place your bid for the maximum you are willing to pay -- this ensures that you don't motivate others to increase their bids out of competitiveness.
P.S. There are services out there that will perform so-called 'sniping' on your behalf for a small fee. If you are handy with computer scripts, it is a fairly easy task to write a script to do this, as well.