> In "magic number bidding" an auctioneer colludes with a bidder ("the
And it is just vaguely possible that there might happen to be other
definitions as well ;-) Please remember that eBay is not really an
auction; it is a pre-defined viewing period followed by a bidding
frenzy with a predetermined ending time. There is no auctioneer and no
"going, going, gone" involved.
In my case, "magic number bidding" on eBay involves no collusion.
Instead, the bidder simply analyzes the value of the item to himself.
In other words, he decides on the amount that, if he wins the auction,
there will be no buyer's remorse, and if he loses the auction, he will
not kick himself for not bidding higher. With the time as close to
running out as he feels comfortable with (many factors influence this,
from connection speed to antsy-ness), he places one and only one bid,
preferably so late that even the snipers have no time to react.
Assuming he accurately determined his magic number, the outcome is