Posted By:
Eric BrehmIn the Mastro auction EACH lot closed after no bids had been received on it for 30 minutes. In REA's auction ALL lots were to be closed simultaneously when no bid had been received on any of the lots for 15 minutes, but as it turned out they closed the entire auction at 3:00 AM EST, because of the lateness of the hour, after giving warning that they would do so. Which method is better for bidders?
Seems to me like the advantage of simultaneous lot closure is that it gives bidders maximum flexibility to allocate their finite resources to the lots that they want most and can afford. With individual lot closure, if you desire to shift your resources away from lots that have been bid up beyond your maximum, you can only choose from among those lots that still remain open.
The advantage of individual lot closure is that you can go to bed as soon as all lots that you are possibly interested in have been closed, which may occur long before the last lot in the auction closes.
While neither method prevents bidders from prolonging the bidding on any particular lot into the wee hours of the morning, it seems to me that the individual closure method is probably better for those who are focusing on a small number of lots and want to get the matter resolved at a reasonable hour. The simultaneous closure method is probably better for those who are juggling a large number of lots against a finite budget and want to maintain the most flexibility.
Other thoughts?