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Thread: Obvious price collusion on ebay.
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Old 06-22-2011, 06:36 AM   #21
quinten182
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Join Date: Mar 2011
Location: STL, MO
Posts: 1,644
The Real Issue: These shill bid items count towards said median. If enough are out there, other buyers start believing that is the price, and then they bid up to that amount on an entirely separate auction for the same item. Other buyers then see this and begin doing the same. The next thing you know, the economy of a particular item (and sometimes then the entire wave/line) domino effect into an overpriced pile of crap.

Now yes, smart people can watch ended items and see what they go for and use them as a deterrent from bidding on overpriced items, but again, if the market raises overall before you find another item at the "real price" in time, you will end up with empty hands (or an empty wallet if you cave). It's better overall to click "completed listings" and find a median early and never get caught in the cycle (I use this daily as a former powerseller). But sometimes, as I said above, the cycle catches up to you either way.. and you're suddenly thinking about that "cheaper" $60 original Warpath.. ><
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