Swoopo was a brilliant concept and it's the kind of thing I wish I had thought of... that is, in the alternate universe where I have no sense of ethics and don't mind ripping people off.
The psychology behind why the site works is identical to why some people fall big for Nigerian 419 scams... "If I don't spend a little more money, I'll lose it all!". Suddenly it makes sense to pay $100 more than retail for a PS3 or TV because if you don't you'll be out $250 in bidding fees and not have the item.
The funny thing about sunk cost is that everyone seems to know about it, but nobody seems to actually act on the concept. You see lots of folks with MBAs doing it when it comes to trading, and they've all sat in the econ class and nodded when that topic came up.
Hey man, I'm doing it right now ... got a startup i've spent 10 months on that I'm still hoping I can make successful. Even though I could probably quit and pickup one of these 150k jobs everyone seems to be getting ;)
The psychology behind why the site works is identical to why some people fall big for Nigerian 419 scams... "If I don't spend a little more money, I'll lose it all!". Suddenly it makes sense to pay $100 more than retail for a PS3 or TV because if you don't you'll be out $250 in bidding fees and not have the item.