DomainSherpa Review – May 30, 2024 – NamesCon 2024 Auction Preview
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Auction Theory and Reserve Prices
In auctions, setting reserve prices can alter behavior and skew perceptions of an item's true value. To encourage fair market value determination, it is best to set a low reserve price and allow the market to dictate the worth of an item based on market demand. Revealing reserve prices upfront can lead buyers to feel they overpaid if an item sells for more than the reserve. Auctions are meant for price discovery and emotional engagement, where bidders compete against each other to win, fostering a sense of satisfaction and thrill. The dynamic of bidding against known and unknown competitors further enhances the auction experience.
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