Auction Bidders Overpay Significantly, Wasting Billions Annually
The researchers found that in online auctions, many people end up paying more than they would if they just bought the item at a fixed price on the same webpage. This happens in almost half of all auctions they studied, with only a small group of bidders causing most of the overbidding. The researchers think this behavior is not rational and suggest that it might be due to people not paying enough attention to the prices.