Here’s the scenario…

A seller puts a casino chip up for bid in an Ebay auction. This is a “valuable” and highly desirable chip. It is obvious from the item description that the seller knows the chip is “valuable”. In the description the seller quotes TCR number and value code, and states that he is a C.C. & G.T.C.C. member. The auction has a $500.00 reserve (five hundred dollars) that is not stated in the description. The bidding starts at $1.00 (one dollar).

During the seven day Ebay auction the item receives twelve (12) bids from eight (8) different bidders. All the bidders are aware of the chip’s “value”. When the auction is over the high bid is only $25.00 (twenty five dollars).

So, my question is, why did the bidders bid so low? Why did the bidders even bother to bid?

I appreciate any and all comments. Thanks.