posted on April 13, 2001 05:25:42 PM new
Because this guy REALLY wants one of these widgets AND he knows that he will get his widget at the lowest successful bid, probably not anywhere near his bid of $12.00, unless of course the bidding goes crazy and his $12.00 does in fact end up being the lowest successful bid (highly unlikely). With his $12.00 bid, he has a VERY good chance of getting his one widget with little risk of actually having to pay that much.
Let's say the auction ends with bids on 15,000 of these widgets. 14,999 of the bids are for 75¢. Your bidder will be the high bidder at $12.00. He will get his widget at 75¢ along with everyone else.
Now, lets say that 30,000 people bid $5.00 per widget. Your high bidder (at $12.00) gets his widget at $5.00. The next 19,999 bidders will get their widgets as well at $5.00, starting with the bidder who bid $5.00 first.
[ edited by dubyasdaman on Apr 13, 2001 05:31 PM ]
