A dealer, who buys items at antique auctions every week, notices a consistent pattern in large antiques auctions. Items auctioned in the first 30 minutes and in the last 30 minutes tend to fetch lower than expected prices. Items in the middle of the auction claim relatively high prices.
(a) If the dealer's observation is correct, are antique buyers behaving rationally?
(b) What strategy do you suggest in response to this pattern?

Question

Quizplus · Accepted Answer

The Answer of A dealer, who buys items at antique auctions every week, notices a consistent pattern in large antiques auctions. Items auctioned in the first 30 minutes and in the last 30 minutes tend to fetch lower than expected prices. Items in the middle of the auction claim relatively high prices.
(a) If the dealer's observation is correct, are antique buyers behaving rationally?
(b) What strategy do you suggest in response to this pattern?

A Dealer, Who Buys Items at Antique Auctions Every Week