Auctioning

Auctioning Negotiation

Several parties desire something of which there is only one. Instead of traditional negotiation, price is arrived at during open bidding. This creates competition between buyer and seller and can drive up the price because both parties want to win.

Here is an example:

EBay…need I say more? Unless you have been living under a rock for the past 10 years, you have probably discovered the competition induced adrenaline rush EBay has to offer the everyday consumer.

I nostalgically remember my first EBay purchase like it was yesterday. The Lennox Wedding Frame I desired could only be practically purchased online since the premium department stores charge on these types of goods is outrageous! After placing my minimum bid I casually noted the auction end time and planned to log on shortly before. An hour before the frame was to be mine, another bride had doubled my bid! How could she, even if my offer was only $5.00! After a short EBay lesion given by my new husband, I waited to increase the bid until the auction end time was near and to my surprise I was the highest bidder. Instead of just being satisfied that I had got what I came for, I was ecstatic that I had won! Sure I paid a little more than I originally set out to, but the satisfaction gained from going up against another and coming out on top made the experience more than just buying a frame.

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