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WM auction and Scandinavian auction: what are the advantages and disadvantages?

A WM auction is one where money is used instead of goods. The administrator of such an auction announces new tenders, determining the date of the auction and the original bank. Each participant makes a bet that equals a certain amount – for example, one dollar – and this money is immediately debited from the account
bidder, adding to the bank.

Bets can be made, of course, an unlimited number of times, if only there were enough funds in the account. The winner is the one whose bid will be the last in the allotted time for bidding. He takes a rather significant part of the bank, but in such a way that the auction administrator not only regains the original bank, but also remains in the black.

The administrator, of course, can also go into the red – if, for example, the starting bank is ten dollars, and the bid is one, and during the bidding only two or three bets are received, according to the rules, the administrator still takes a certain percentage, and not clearly agreed upon amount; but he is much less likely to go into minuses than the average player. Serious banks, as a rule, have a place to be on large, well-visited sites, and there are quite a lot of bidders: after all, everybody wants to set up just one dollar and break a bank, which, for example, consists of one hundred dollars! ..

There are quite a few such auctions on the Internet. To find them, it is enough to ask the search engine the following request: “WM-auction” – the results will be several dozens, or even hundreds. But this is still a little not the auction to which I want to devote an article. A WM auction is rather a gamble than a platform where you can buy or sell something. I am talking about it only because it is also called an auction. As they say, for reference. But on this, perhaps, we will close the topic. Those who are interested in such auctions can easily find them on the Web, register there, replenish their account – by the way, the calculation is done only with electronic money, so there’s no way to get through without registering with WebMoney! – and try your luck, maybe lucky.

Scandinavian auction
This morning I received a letter from a friend who told him about one of these auctions. He wrote that before his eyes a 1 Gb flash drive was sold for only 2 rubles and fifty kopecks. Moreover, its real price is about half a thousand …

500 and 2.50 – isn’t it tempting? But we do know that free cheese happens only in a mousetrap! Then what’s the catch? Where is the dog buried? And here is the diagram:

1. One bet is always equal to a certain amount – neither more nor less. In some auctions, the bid may be 25 kopecks, in others – 1 ruble, and so on. But the main thing is that one bet is a clearly fixed amount.

2. Each bidder buys bids. You can buy a single bet, or immediately a whole package of them. Again, at different auctions everything is a little different. But the principle is one. The main thing is that the price of a bet is not at all equal to its monetary equivalent! That is, the rate may be equal to 1 ruble, and cost
bidder, for example, 5 rubles.

Now let’s calculate:

Suppose that a product whose real price is 500 rubles was sold at a Scandinavian auction for 200 rubles. Someone received the goods, paying for him only forty percent of its value.

But the price of one bet, for example, is 2 rubles, and the equivalent rate is 50 kopecks. That is, one bidder, having bought one bid for two rubles, adds only 50 kopecks to the price of the goods.

I remind you that our product went for 200 rubles, and its real price is 500 rubles.

200 rubles is 400 bets. And each bet in our case costs 2 rubles. Consequently, the bidders received 800 rubles for a product of 500 rubles. They gave 500 for the goods, and put the remaining 300 in their pocket.

The seller of the goods was satisfied, the buyer, too. The initiators of the auction also did not fail. Here are just the rest of the bidders left in the red …

3. But what about, you ask, if only 2-3 bets are made on the goods? If it costs 500 rubles, and 2-3 rates – only 4-6 rubles?

4. And then the auction organizer comes to the rescue of such an option as auto deliveries. Such a chip can be used by any bidder, or maybe a robot specially connected to this auction.

5. At the same time, note that each bid extends the time allotted for bidding, thereby fomenting additional excitement among their participants. And not one of the participants, of course, knows how many robots are traded per lot. Robots, however, clearly know their job: to make sure that the goods do not go for nothing.

What follows from here?

And the fact that the goods, of course, can be sold for very scanty money, but not to a real person, but just to a robot.

It is really possible to buy any product at such an auction, and with a powerful discount. But you can’t buy anything by spending a lot of money.

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