Why Do People Pay More At Auctions?

[lonely panet]

Hi every one

 

well I was at good sized auction yesterday and I was amazed at how high the prices were going.

 

out of the 20 swords there only 3 were untouched by western hands, the rest were put togeather and or beyond repair.

 

so why do people either not do there research before buying or go well over the normal retail price for something that you could have got better and cheaper on fleabay for. IE jim dawsons book sold for $245 second hand ???

 

I open this topic., as a very average collection of rough swords and militaria made over $63,000

 

:o

[Kronos]

Got a link to the auction?

[lonely panet]

the photos are very lower quality but

http://www.tarlingsevents.com.au/Japanese-samurai

[Shamsy]

I'll make a few guesses. People tend to get both excited, competitive and pig headed in auctions. Probably the best place to see buyers regrets. If you get a few people bidding that don't know the value of items, they can create a sense of false worth, in effect thinking that each other must be in the 'know' and that the item must be worth more.

 

If you've ever been to an antique or collectable shop, often the small bit of militaria for sale is nearly 4x market, so perhaps this also works to distort an ignorant bidders determination of value? At shows when I talk to people I find people either grossly under or over value items. The old "a real handmade sword from Japan is worth $50,000!" which I was excitedly told at the last show I attended. A good combination of all of the above perhaps?

[Gilles]

In France, I've noticed the same trend. In auction houses, prices have a tendency to soar without apparent reason. What I've understood here is that the typical regular attendant is rather aged, has money to spend and usually ignore internet. They don't really know the real value of those items and are buying the goods because is has aroused their attention or because they can't help buying something whatever it is. We call the the empty hand syndrome.

On the contrary, you will see those very same people attending an arm show and arguing for hours to get a bargain of a few Euros on a normal priced good.

[nihonto1001]

Because peaple will always want something more if they know other peaple are interested.  The same goes for people:) The economy works like that on a grander scale.

[1tallsword]

ALL OF THE ABOVE I FIND ARE CORRECT.......  there are many reasons, which all have been broken down here.. and might I add for the thrill of the win. when in reality you are not winning anything, simply paying too much....

[Ted Tenold]

Depends on the auction really.  The higher the quality of items and the more notable the auction house, the more likely the attendance will be more educated in that particular gendre, but ingnorance does often transcend all level of financial well being.

 

I went to a little local auction here this very morning on the rumor there was a katana in it which is very rare occurrence in a place where old horse tack, boxes of depression glass, and oak furniture fill the lots.  Got to the viewing early and found it was a very typically bad chinese repro gunto.  You know, big garrish hada, bad carving of a name on the blade, serial numbers stamped on the habaki...  a solid list of fails.  Since I already have plenty of stakes for my tomato plants, I diverted my attention to the tool section where a lovely little power miter saw called out to me.  The sword came up to auction before the saw so I watched with fascination as four bidders in the room drove the price of this POS SLO (sword like object) up to $425.00.  Un  be  lieveable...   The new owner had an ear to ear smile on his face as the room applauded the fall of the hammer, and somewhere in a galaxy far far away, Obiwan felt a great disturbance in the force.

 

So my answer to the OP's question is that the main reason people overbid is pure ignorance, with a generous helping of foolish pride. 

 

And the miter saw?  All shiny and near new, it came home with me for the low low price of only $40.  I had my eye on a black velvet Elvis painting too, but life really is about choices..  :-)     

[John A Stuart]

Good one Ted. John

[Michael Kwok]

I'd like to see that smile again when he finds out...

[kusunokimasahige]

Just wait. He might find his way here one day

[Stephen]

Why because they can....hummm.

[Shamsy]

It'd be a gut wrenching feeling to find out you bought a worthless piece of junk. I've been careful and lucky, but I'd still not wish it on anyone. At least it wasn't $1,000