You're going to think I'm nuts when I tell you this story. A couple months back, I bid on a guitar on eBay-not just any guitar--a Brian Setzer model hollow body Gretsch. That may not mean much to you, but its a 3,000 dollar guitar, and my bid? Just over half that price. My friend Melissa and I do this on eBay all the time - bid really low just to dream a little. These online auctions bring this kind of behavior out in people -- right- thinking folks driven to to bid bid bid.

So popular is this new form of online obsessive, bargain-hunting that eBay's stock has gone up more than l000% (check number). Now everyone from Amazon to Microsoft to IBM wants to get in on this latest internet craze. But there are some dangers - first is the issue of trust. When I buy something on eBay, I first send the seller a check or money order-THEN I get goods. I've been lucky so far and haven't been burned, but others have, leading auction houses to create escrow accounts for some items.

Some Internet pundits think one day soon we'll buy most of our stuff this way. Just imagine, you'd theoretically never pay more than you wanted to for anything. Think that new PC is only worth 50 bucks? Well then that's your bid. Oh,wait that's not how it works--the item sells for what the person who is willing to pay the most bids. And not every site has the deep inventory eBay has, making it tough to find things you want. Amazon's new auction house is a tad vacant with few people bidding on a small number of items. On all of these sites, it takes time to find your item, bid, get outbid, bid again, and hope to win when the auction ends-which can take days.

No, you won't be buying your everyday needs this way. It's inefficient, slow, and doesn't always lead to a good deal. But man is it fun. Its a game for the buyers and the sellers, although the Sun Francisco Chronicle ran a story on what they call "Bay Traders" - people who actually earn a living this way.

I suspect most people are more casual users... but I'm betting they have the common sense not to do what I did-- jokingly bid $1700 on a really cool Brian Setzer guitar... and accidentally win it. Whoops.

Look for every major online player to add auctions to their web site in the coming months, whether it makes sense or not.