02-07-2006, 10:38 AM
Article talks about auctions for advertising media buying, but it also contains statements that are relevant to auctions for any type of product or service.
full article: http://www.imediaconnection.com/content/8193.asp
Quote:...why the auction marketplace can't always work for media planning and buying.
...But auctions are helpful really only when the value of a product is indeterminate, when neither buyer nor seller has a real sense of an asset's innate value...
The problem with auction-based marketplaces for intangible product such as media is its susceptibility to the irrational exuberance and hysterical whimsy of human passions. A mixture of limited inventory, greater fool theory, and the incorrect predictions of any audience's content consumption can lead to an illogical attribution of value.
full article: http://www.imediaconnection.com/content/8193.asp