> In general I do not understand how auctioning for a thing with fixed cost aligns with the principles of free market. Isn't it kind of like real estate? In t

> In general I do not understand how auctioning for a thing with fixed cost aligns with the principles of free market. Isn't it kind of like real estate? In theory, it should cost roughly the same amount to build a house in the middle of nowhere versus the center of Manhattan. But more people want to live in Manhattan, and there's a limited amount of space, so buyers effectively bid up the price. On any given website, there is a limited amount of ad space.