Why the competitive spirit can take over in auctions —

Why the competitive spirit can take over in auctions — and how you can stay in control


Despite the pandemic, Australia is in the midst of a hugely competitive auction market. Sydney, in particular, is experiencing dizzying auction clearance rates and the Reserve Bank’s decision this week to keep interest rates extraordinarily low will no doubt keep auctioneers busy.
If you’ve ever taken part in an auction, you’ll know emotions can run high, and sometimes drive us to bid more than originally intended.
Our paper, published in the journal Cognitive Research: Principles and Implications, found the way auctions are designed and run can vastly increase competitive arousal in bidders.
That’s obviously valuable information for sellers. But if you’re a buyer, the good news is there’s a lot you can do to ensure your competitive spirit doesn’t leave you with a bad case of buyer’s remorse.

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