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Rules on Auction defaults 2

Caliandris Pendragon
Waiting in the light
Join date: 12 Feb 2004
Posts: 643
05-04-2006 00:49
I am sorry the SL Answers forum doesn't allow me to repost to the same thread.

Thank you for your answer, Jack, about auctions defaults. I am glad to hear that you are trying to make the system fair for all.

One question occurred to me as a result of your answer. You said:
From: Jack Linden

Repeatedly defaulting on auctions, whether someone chooses to default or simply fails to claim land they have won, will result in that account losing the right to take part in future auctions. As stated on the Auction pages, defaulters are charged a fee for each parcel defaulted. The second highest bidder is then offered the land at their highest bid. If they decline, the land is taken back and auctioned once again.


I was wondering if the effect of the defaulting resident's bids was taken into account when operating the fall-back to the second highest bidder. Obviously someone who is winning an auction because of a default has the choice to take the land at their highest bid...or not. But it is also obvious that a defaulting bidder may have bid up the price artificially...is that taken into account?

It seems to me that if repeated defaults are tolerated, this can be gamed both ways. If the effect of the defaulting resident's bids are removed, and therefore it is the top bids made before they entered the auction which count, it would be easy for a person with many alts to bid against themselves, artificially raise the price to discourage other bidding, and then default. If there is a big discrepancy between the alt's highest bid and the winning price, this would win an auction at a bargain price.

If the defaulting avatar's effect on the auction is NOT removed, this would mean that they can artificially raise the prices for other residents, and the only penalty is the default fee.

The only way round this sort of gaming of the auctions is to have a strict rule that more than X number of defaults results in barring from the auctions, in my opinion....

Do you keep count of defaults? Is it an automatic bar?
Cali
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Jack Linden
Administrator
Join date: 15 Dec 2004
Posts: 158
05-04-2006 06:01
Hi again Caliandris,

First of all, yes we're aware of who defaults and how often they do so. There are many reasons why someone may default, usually quite innocent and not always their own fault. So it is hard to apply a strict bar - but as mentioned previously, we are looking hard at this to find ways to ensure consistent enforcement of the rules and where it makes sense to automate something, then we will.

As for gaming of the 2nd bidder option, there are a couple of points I would make. Firstly, auctions have a reserve price set by us, so all auction winners will be paying at least the minimum that we decide is a reasonable fee for the land. Secondly, bidding histories are retained so we would be able to see suspicious bid activity.

It would be difficult to remove the effect of the defaulter's bids, as there may have been many bids by many people. But if the 2nd bidder feels the price has been unfairly inflated, they can decline to take the land and bid again when the land is re-auctioned.

I realise the No Reply thing in this forum is tricky.. if you wish to discuss this further, by all means IM me inworld.


Jack Linden