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> A better fix might be to allow sniping (automatic bidding in the last second).

In a sense they have that already, since eBay is a (quasi) second-price auction.



What do you mean?


A true second-price auction is one where the bidders (secretly) inform the auctioneer of the maximum price they'd be willing to pay, and the bidder who nominates the highest price wins, but pays the price nominated by the second-highest bidder. This is done in an attempt to eliminate the "winner's curse" and encourage the bidders to nominate their true maximum price. See http://en.wikipedia.org/wiki/Winner%27s_curse

eBay's proxy bidding system approximates a second-price auction because if everyone enters their true maximum, the person who nominates the highest value will pay (2nd-price + minimum-bid-increment).




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