Profitability of Unique Bid Auctions
Although items worth thousands of dollars can, under some circumstances, be won by very low bids of far less than their value, the auction organizer typically charges a participation fee, which in an auction with a sufficiently large number of bidders will exceed the value of the item being sold, allowing the auction organizer to make a profit.
Because such auctions typically require very large numbers of bidders to be profitable, virtually all instances of unique bid auctions are heavily dependent on the use of technology, in that they are either run solely using mobile technology (e.g. bidders submit their bids via reverse charge text messages) or they are on-line auction sites, or both.
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