Why is bidding near the end of the auction, so effective?Here are the reasons:
- People usually place their maximum offer while bidding at online auctions. While outbidding them at the very last moment of the auction, you leave them without sufficient time to outbid you.
You win - By bidding immediately after finding an interesting item you automatically raise its price. Other users would then probably raise their maximum bid. Thanks to the Sniper, you do not have to raise the price of that item but in turn are able to wait and bid at the best possible time.
Several academic papers have been written so far about the profitability of using online the Sniper. Here you can find two of such:
On eBay, it pays to snipeThe Timing of Bids in Internet Auctions: Market Design, Bidder Behavior, and Artificial Agents
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