Marketplace Economics

[Larry Gauthier]

Audie:

This is not just a "Good for sellers" "Bad for buyers" phenomenon. Keep in
mind that the Internet brings more sellers, as well as more buyers, to the
table. Thus, supply to the market increases and prices should drop. I
suspect that, in total, the ratio of buyers to sellers has remained
constant. (Certainly the global ham population has not changed dramatically
in recent years)

The real thing the 'net does is create a sense of urgency and frenzy,
centered around the hundreds of transaction we are now witnessing. Whereas
before the average ham was lucky to get out of the house for three or four
Hamfests a year and never attended any estate auctions (I know I never did
in 30 years), we now see more swapping, trading, selling, offering in a week
than we saw in a year. This has created a hype and swarm that drives prices
and creates a sense of urgency.

-larry
wb8bgo


----- Original Message -----
From: "Audie Kaufman" <K5IC at AOL.COM>
To: <HEATH at LISTSERV.TEMPE.GOV>
Sent: Friday, March 10, 2000 7:27 PM
Subject: Re: Marketplace Economics


> Amen Harvey: The reason prices are "high" at the auction sites is because
the
> seller has a much larger audience to view the item for sale. Before, when
we
> sold items few people could view our merchandise (ie hamfests, Yellow
Sheets,
> the back of ham radio magazines).  The market was imperfect. Now, with
access
> to many more buyers the true value of merchandise can be realized. This is
a
> double- edged sword, if you sell you're happy, if you buy you're not. Free
> and open markets made America great. The price, in these markets, is set
by a
> willing buyer and a willing seller negotiating a price. Auctions produce a
> fairer market, like it or not.
>                                             Audie . .
>
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