By Paul Snell
A study published today in the journal Science brings good news for buyers.
The research revealed that fear of losing often leads to people overbidding in auctions.
By scanning the brains of those taking part in auctions both against humans and computers, scientists found an exaggerated response when contestants lost against real people. Those with the biggest difference in response were most likely to overbid for items in the auction.
This definitely sounds like something purchasers could exploit. Want a better result from your reverse auction? Why not get your suppliers in the same room so they can see the whites of each other’s eyes.