[urq] What is market value?

[packley]

Brett:

You are dancing on a floor where opinions must be supported by fact, or
definition, not by imprecise comments.

Ebay has provided a device to purchase goods, and your interpretation of

what a winning bidder is, what determines market and value is not wholly
correct.

Your "economics professor" would not state his opinion as you did
unless he was tenured, and a part-time associate degree lecturer.

Definition of Market value:

Market Value  
The value of the vehicle that the 'market' is willing to pay based on
the valuation of the car at a specific period
Source:
http://www.fromallangles.com/glossary/car-insurance/terms/market-value.h
tm

In real estate, a commodity that is moderately fungible:
Fair Market Value  
An appraisal term for the price which a property would bring in a
competitive market given a willing seller and willing buyer, each of
whom has a reasonable knowledge of all pertinent facts, with neither
being under any compulsion to buy or sell.  

You will note that the car that sold had no comments related to the car
condition, such as excellent condition, immaculate condition, etc.

So I would venture to say Ebay created a "market" for the car as
described.

It could be argued that the car could be sold for more or less, and
certainly if you could get 10 buyers to inspect it in a physical auction
instead of a virtual one, values might be different, and higher than
e-bay, 
but this buyer won technically bought it for a "market value"


Phil

Message: 2
Date: Fri, 13 May 2005 14:19:37 -0400
From: Brett Dikeman <brett at cloud9.net>
Subject: Re: [urq] Automobile magazine - other misinfo
To: "Ingo Rautenberg" <i.rautenberg at waratap.com>
Cc: urq at audifans.com, quattro at audifans.com
Message-ID: <136BFAF3-C3F4-4AFE-AB49-3B5785ED4B3C at cloud9.net>
Content-Type: text/plain; charset=US-ASCII; delsp=yes; format=flowed


On May 13, 2005, at 1:38 PM, Ingo Rautenberg wrote:

> I feel better.
>
> That makes at least two '84 Urqs that have (apparently) sold for  
> over 10k on
> Ebay in the last month :-)
>
> Maybe Dennis should talk to his Ins. Co again ;-)
>

I posted about this in March when someone said something about A6 4.2  
values, and ebay was mentioned.  Any economics professor will tell  
you that auctions don't represent market value.  Google for "winner's  
curse", or read: http://slate.msn.com/id/21810/

Basically, if you won the auction, you paid more than anyone else was  
willing to pay- and hence you didn't pay fair market value for the  
item in question.

Brett
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