Land auctions - a conspiracy?

I'm just curious (as always). A week or so ago I bought a 512m in Basenville in a private sale. I thought it would be fun to have a second one (see my other open thread in this forum about changing identities) and put a second skybox and playground up, maybe form a group with my two accounts since the other one is going to be around for another year, etc. I went to the L$ auction and put in a bid on a parcel about 250 meters away from my current parcel that was L$10 above what I paid last week in my private purchase (paid L$1766 for the original 512m). Immediately a proxy bid kicked in and raised me L$10. Just for fun, even though it was more than what I thought it should cost, I bumped by L$10 and the proxy immediately took the bid to L$1800, which seems out of line with what I'm seeing.

So, I figure free market economics are at work and since there's another 512m a couple hundred meters from there, still in Basenville, I go after that one and immediately get outbid. Enough is enough, so I bailed out and it will be interesting to see what the final price is. Has anyone else had similar experiences? Somebody out there must really want those parcels to go that high, in my opinion. This could be the free market, but I was wondering if anyone else had experiences like this? Could "someone" be gaming the system to push prices up? Remember, just because you're paranoid doesn't mean that someone isn't out to get you! Jackie.

Ever buy stuff on eBay? The auctions work the same way. Bidders put in a maximum price they're willing to pay. Say I bid on that parcel at L$2000, but the current bid is L$1200. The actual bid my competitor filed was for L$1500. My bid runs the current bid price up to L$1510, just over where my competitor has decided he will drop out.

If I just bid $1210, the automatic feature of the auction means my competitor's bid will be raised until he just outbids me.

It may be that some sellers try to game this, by putting in their own high bid using an alt. But if they "win", they still own the parcel, so I don't really see the point. The land will still sell for "what the market will bear."

Hi, Lin. I know how it works on an intellectual level...It just seems that there is a lot of interest in that area. This tells me that I really got a bargain on the land for the cottage, then! What a shrewd consumer I must be...Also, thanks for the advice on land and groups Jackie

OK, I went after one of the parcels aggressively and now actually am winning at what I think is a fair price. The system is not rigged Apologies to the aggrieved parties! Cheers, Jackie.

Google this

Big difference is if you get caught doing this on E-Bay (bidding on your own item to artificaly up the bids) you will get banned.

A few weeks ago, I did the auction bit on a property next to mine. There was only one other bidder (as far as I could tell). We started at L$2500 (for a 1024 sq m) . . . and I won at L$3500.

A steal . . . as far as I was concerned.

That's been the only property offered for auction in this area for quite a while.

So I don't think the system's thoroughly gamed. I think you just got into bidding with people who really wanted the property. My experience with such people is that at least one of them will get into a mode of "must win at all costs" . . . and then the bidding goes crazy.

--- Rema