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Topnotchsy
Featured Contributor, The best players in history?
- Aug 7, 2008
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Think this is worth noting.
At times when a player is doing well and prices are increasing, an auction or two will see a significant price jump. I am not talking about times when the increase is spurred on by a huge event (like a no-hitter or crazy hot streak) which pushes prices up, more where there's a somewhat gradual, but clear increase. Then what happens (sometimes) is a couple of snipes, or a buyer believing prices still have a long way up to go and wanting to make sure that they get in and pay higher knock prices on an auction or two a lot higher than they were, even with the increases.
What ends up happening is that the increased prices bring out many more sellers at the same time as they drive down the demand of buyers, (I know, I know, basic economics, but sometimes the obvious gets overlooked.) What ends up happening though is that most of those items don't sell (especially when the vast majority are BIN/BO's at or above the price the last one sold for) and it often provides a decent chance to buy in since the supply has been bumped up and the sellers who realize they are not going to get offers at the prices they were hoping for, often consider taking less (especially as other listings end unsold.) This pays off when the supply dries up again (the slew of unsold listings discourage others from listing their items) the market "stabilizes" and continues its movement upwards (assuming the impetus has not disappeared.)
At times when a player is doing well and prices are increasing, an auction or two will see a significant price jump. I am not talking about times when the increase is spurred on by a huge event (like a no-hitter or crazy hot streak) which pushes prices up, more where there's a somewhat gradual, but clear increase. Then what happens (sometimes) is a couple of snipes, or a buyer believing prices still have a long way up to go and wanting to make sure that they get in and pay higher knock prices on an auction or two a lot higher than they were, even with the increases.
What ends up happening is that the increased prices bring out many more sellers at the same time as they drive down the demand of buyers, (I know, I know, basic economics, but sometimes the obvious gets overlooked.) What ends up happening though is that most of those items don't sell (especially when the vast majority are BIN/BO's at or above the price the last one sold for) and it often provides a decent chance to buy in since the supply has been bumped up and the sellers who realize they are not going to get offers at the prices they were hoping for, often consider taking less (especially as other listings end unsold.) This pays off when the supply dries up again (the slew of unsold listings discourage others from listing their items) the market "stabilizes" and continues its movement upwards (assuming the impetus has not disappeared.)