BidPax?

While you would think wow $13 for an iPod Touch 32G or $15 for an Xbox is cheap, think again.

Each bid allows you to raise the price by 1c, while the bid itself costs $0.6-$1 depends on how many bids are you buying in bulk (buying 500 bids for $300 gives $0.6 per bid). Let's just say everyone is buying the largest bulk and hence every bid costs $0.6, a $13 iPod Touch would cost all bidders 1300 bids, i.e. $780, look, the final price $13 is nothing comparing to the bidding cost. How much does that iPod Touch cost? $399 delivered on the official Apple store. Same calculation, you could see bidders paid $900 bidding cost for the Xbox.

So how much did the winning bidder actually paid? Only one bidder in this bid is not possible because nobody is competing you might get the goods for 1c that's $0.61 for the whole thing. So start from two bidders, the case is still easy, $780/2 = $390 for each bidder, meaning that the winning bidder paid $403($390+$13) for the $399 iPod (surprise surprise) while the losing bidder paid $390 and get nothing! In the case of more bidders the bidding cost for each person cannot be calculated for exact but if one bidder is intending to outbid anybody whenever a new bid is placed, he pays half of the bidding cost, which in the iPod case is $390.

I would love to be a seller on BidPax but I think the company is the only seller here cos they obviously make a lot of money out of those who didn't do the math prior :P