Quote:
Originally posted by on-ramp
I dont have the patience to read through the whole article.
why would they want to end the auction early... why not let it run to end, bringing the final sale price higher? i dont get it.
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I didn't read the article, either, but read a different one.
Like said above, they promised everyone some amount of time on the block. 3 minutes or something.
But, with the "no reserve" (in quotes because it's not really a no reserve auction, but instead a clever gimmick that only benefits BJ) system, BJ is always going to get it's commission, even if the seller is just "buying back" his own car when it doesn't meet his own internal reserve price.
So with a guaranteed profit on each car that crosses the block, the temptation for BJ is to maximize the number of cars that cross the block, rather than necessarily try to maximize the value of each car. If you can run 30 cars per hour through, that's a lot more money for BJ than if you are only running 20 per hour.
This whole thing is going to collapse under it's own ridiculousness.