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Is game theory applicable to collecting?

Started by kav,

29 posts in this topic

kav

kav

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Posted

I came up with this idea thinking about how bad Chuck is at the 'game' of selling comics.

 

There are 3 possible outcomes in this 'game':

 

Seller gets more for item than it is worth. This includes scammers who get a lot of money, and give nothing of value in return eg German newspaper or counterfeit book. It can also be just someone who gets $100 for a book that GPAs at $80, or selling undisclosed resto books, or convincing someone a book is 'soon to be hot'.

 

Seller gets exactly what the book is worth.

 

Seller gets less than the book is worth. Below GPA or old lady selling Action #1 for a dollar.

 

All the hijinx that occur are a result of seller trying to maximize their winnings or buyer trying to maximize his deal. This includes buyer games such as partial refunds, paypal refund and send back German newspaper or returning low grade book instead of book purchased. Also includes robbing someone in back yard with pellet guns.

 

There are all kinds of psychological and outside factors that affect how the game play develops. Short term and long term play.

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Spyder!

Spyder!

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I think this "game" is played in every instance of buying /selling anything - wether it's comics, houses, cars , pets, ...people :whistle:lol

 

So yeah :foryou:

 

Agreed! My training is an economist, and I was thrilled as soon as I saw this thread's title.

 

I agree with Gambit that these "games" in which both buyer and seller are trying to maximize their surplus, occur in every sort of transaction, not just for funny books. This is the push and pull on price that eventually leads to an equilibrium, or market price. It comes from both parties attempting to get as much for themselves as possible.

 

However, I think game theory really comes into play when you start thinking of the problem in terms of how the players in the game anticipate and react to the behavior of others. For example, knowing that buyers will sometimes try to rip you off by asking for partial refunds, etc. what is your best response to this behavior as a seller?

 

Alternatively, I think that repeated games might be the most applicable area of study here. How does a seller charging over GPA consistently affect their ability to do business with the same buyers in the future? Are they trading a 20% greater return today for no return tomorrow as people learn not to deal with them?

 

Lots of great stuff to think about. So in short, yes, game theory applies to collecting, in many ways.

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kav

kav

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I agree. Some sellers do short term games like selling undisclosed resto or missing pages and hoping no one notices. This affects their long term game though. AllThingComics seems to have a pretty successful game with his selling of resto books-some disclosed some not. New players to the game that are unaware of what they are getting seem to be enough of a feeder to keep him going. New players are also fair game for the numerous AF15 scams that some players of this game engage in.

Sometimes law enforcement gets involved when the game goes way out of bounds.

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kav

kav

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Yes watching a movie or eating a hamburger. Going to the Dr's office. Making dinner.

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the blob

the blob

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I came up with this idea thinking about how bad Chuck is at the 'game' of selling comics.

 

--------------

 

Given the size and volume of his business, just how "bad" is he at this?

 

 

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kav

kav

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Well if you're selling one million comics a day but you could be selling 2 million. that's bad.

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valiantman

valiantman

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Well if you're selling one million comics a day but you could be selling 2 million. that's bad.

Not if the profit from the 2 million is the same as the profit from the 1 million.

 

Overpriced books that sell slowly have a greater profit margin and require fewer boxes to be packed per day. lol

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