IT IS a familiar format: the stopwatch on the website counts down the time remaining to make bids in the online auction. The price slowly ticks up. Participants monitor the site, hoping to secure a great bargain. But there is a twist: it is the website itself that provides the goods being sold, and the prices only rise by a penny or two per bid. Each new bid, however, extends the length of the auction by a few seconds. That means that competition is fierce and protracted, but winning bids are often absurdly low, even by the standards of online auctions: a flashy new television for $3, say, or a laptop for $20. These enticing offers lure buyers, who must pay a fee of a dollar or so to place each bid. This format, known as “entertainment shopping”, has become so popular that it has spawned a host of websites.
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