Snipers, Shills, and Sharks: Ebay and Human Behavior

by Ken Steiglitz

Book Overview

Every day on eBay, millions of people buy and sell a vast array of goods, from rare collectibles and antiques to used cars and celebrity memorabilia. The internet auction site is remarkably easy to use, which accounts in part for its huge popularity. But how does eBay really work, and how does it compare to other kinds of auctions? These are questions that led Ken Steiglitz--computer scientist, collector of ancient coins, and a regular eBay user--to...

• Format: Hardcover
• Language: English
• ISBN: 0691127131
• ISBN13: 9780691127132
• Release Date: April 2007
• Publisher: Princeton University Press
• Length: 304 Pages
• Weight: 1.20 lbs.
• Dimensions: 1.0" x 6.4" x 9.5"

Customer Reviews

Very interesting for those who like this stuff

The title says it all. A really in-depth interesting analysis. However, it will not be a best seller because most people are not so nerdy.

Good read

This is a good book and I thought it was entertaining. Some may find it a bit dry because it is written more like a text book but it does have some interesting information, some interesting stories, and it has a lot of math in the back. We all love math right? The math is just for reference and is in the appenedix, it was a good book I thought. However, it was not so much about trading safely on ebay, it was more about how real life auction rings fix prices, some statistical analysis of online auctions etc. This is a good book but if you are looking for something that explains ebay fraud and how to avoid it, look for Scams and Scoundrels, it describes more of what I thought this book would be about. While this is good, it does not have the information on identifying fraud auctions, fraud sellers, or how to protect yourself from ebay scams like Scams and Scoundrels does. Get them both, they are both good, just different takes on ebay criminals.

Enthralling. It gets better as it goes on.

I've never liked auctions, but that has not reduced the interest of this book in any way. It gives clear and engaging explanations of how different auctions work, both in theory and in practice. Special attention is given to eBay of course, and why it works the way it does. The main text discusses strategies and the effects of different auction rules without resorting to any math, allowing the reader to gain an excellent grasp of the issues without concentrating on technical details. But the underlying theory is not shortchanged in any way by this, since the math is contained in substantial appendices, where it is laid out with complete, easy-to-understand explanations. I highly reccommend this book both as an introduction to eBay, and to auction theory. For me, it's both.

Engaging, informative, and entertaining!

Snipers, Shills, and Sharks is an instant classic that will appeal to anyone interested in understanding why ebay works the way it does and how it relates to a beautiful economic theory developed over the past few decades. How do English, Dutch, and Vickrey auctions work? Why do experienced ebayers snipe? When should a seller set a secret reserve? Why is ebay a second-price instead of first-price auction? Why does ebay post the second highest bid and not the highest one? These answers and much more are crisply explained and supported by real-world and laboratory experiments. I opened the book knowing next to nothing about auctions and ebay (other than as a participants), and now I feel that I understand a great deal. Steiglitz begins in Chapter 1 with classic auctions, including English and Vickery. He explains the theory underlying each auction, including the seminal result that bidders should be truthful in a second-price auction such as Vickery or English (with a few caveats). Chapter 2 motivates ebay as a natural evolution of the English auction where bidders participate over time, with a fixed deadline. Chapter 3 analyzes real bidding histories on ebay and other experimental results. He explains when practice agrees with the theory, but also when it doesn't on account of human behavior. It also explains the benefits of sniping. Chapter 4 explains why ebay is not a first-price auction; Chapter 5 discusses strategies for the seller, including how to set the opening bid and secret reserve; Chapter 6 discusses strategies for the bidder, including how much to bid and when. Chapter 7 describes various ways that participants cheat and the theory underlying it. The theory is inherently mathematical, but Steiglitz does a masterful job of replacing the math with easy-to-understand intuition in the main text and deferring the technical details to the appendices. That being said, the appendices are definitely a worthwhile read if you remember single variable calculus. The theory is extremely elegant. Appendix A treats the class Vickrey results; Appendices B and C cover various extensions. Appendix D describes a number of experimental results. Numerous references are provided for further study. One of the most charming features of the book is the author's conversational tone and his personal anecdotes, both as an avid coin collector and as a professor who performs classroom experiments. For example, Steiglitz illustrates the "winner's curse" via a classroom experiment where he auctions off a jar of nickels to the highest bidder.