Auction site scam

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landrew
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Auction site scam

Postby landrew » Tue Jul 31, 2018 4:19 pm

There's a commercial running now for a site where you can bid on items in hopes of getting them for very low prices. The Penny Auction Scam is that they are showing testimonials by people who claim things like buying a big-screen TV for $29, or a $300 kitchen mixer for $25. iPads for $35 and such. These people are probably 1 in 10,000 bidders, and they are used to make the testimonials. The average bidder gets stuck paying higher prices and extra fees.
https://www.youtube.com/watch?v=HEXaIGCs-Ak
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Austin Harper
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Re: Auction site scam

Postby Austin Harper » Tue Jul 31, 2018 7:16 pm

Is this the kind of bidding where you pay no matter if you win or lose? So maybe somebody did buy a TV for $29, but they've also bid $28 on 20 other TVs and lost so they've actually paid $589 to get to this point.
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TJrandom
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Re: Auction site scam

Postby TJrandom » Wed Aug 01, 2018 6:32 am

Austin Harper wrote:Is this the kind of bidding where you pay no matter if you win or lose? So maybe somebody did buy a TV for $29, but they've also bid $28 on 20 other TVs and lost so they've actually paid $589 to get to this point.


Are you serious - do those types of auctions exist?

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scrmbldggs
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Re: Auction site scam

Postby scrmbldggs » Wed Aug 01, 2018 1:43 pm

And its users vote!
.

Lard, save me from your followers.

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Austin Harper
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Re: Auction site scam

Postby Austin Harper » Wed Aug 01, 2018 2:05 pm

The certainly do.
Wikipedia wrote:All-pay auction
The most straightforward form of an all-pay auction is a Tullock auction, sometimes called a Tullock lottery, in which everyone submits a bid but both the losers and the winners pay their submitted bids. This is instrumental in describing certain ideas in public choice economics. The dollar auction is a two player Tullock auction, or a multiplayer game in which only the two highest bidders pay their bids.

A conventional lottery or raffle can also be seen as a related process, since all ticket-holders have paid but only one gets the prize. Commonplace practical examples of all-pay auctions can be found on several "penny auction"/bidding fee auction websites.
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landrew
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Re: Auction site scam

Postby landrew » Wed Aug 01, 2018 4:33 pm

I don't know if you've experienced the "phantom bidder" scam at a regular auction. You bid on something, and the auctioneer sizes you up to see if you look dumb enough, then he plays you off against a bidder that doesn't exist. Usually he accepts the bid from somewhere hard for you to see, like the back of the crowd. Technically illegal, but almost impossible to catch.
The job of a skeptic is to investigate the unexplained; not to explain the uninvestigated.


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