You are trying to decide how much you should bid on a Ken Griffey Jr. rookie baseball card in good condition on Ebay. You notice that there have been 8 transactions involving Ken Griffey Jr. cards in the last month on Ebay.
|
Transaction # |
Condition of card |
Price paid for card |
|
1 |
Excellent |
$800 |
|
2 |
Poor |
$200 |
|
3 |
Good |
$550 |
|
4 |
Good |
$500 |
|
5 |
Excellent |
$850 |
|
6 |
Good |
$400 |
|
7 |
Poor |
$350 |
|
8 |
Excellent |
$650 |
a. Estimate how much you would be willing to pay for the card.
b. Now assume that the seller of the card has been rated poorly by other buyers because he has misrepresented other items he has sold to them. What effect would this information have on how much you would be willing to bid for the card?